CoinVoice has learned that QCP released a daily market observation stating that, as expected, we saw typical volatility selling after the end of the quarter, with volatility declining by 2-3 volatility points since last Friday’s record options expiration.
Although BTC has been consolidating near the bottom of a one-month range and this month's returns have been flat, BTC and ETH performed reasonably well in the fourth quarter: BTC rose by 48%, while ETH rose by 30%. However, it may still be too early to summarize this quarter. Just yesterday, Saylor released his BTC purchase tracker again, which may signal another round of purchases is imminent, further supporting the price.
Despite the possibility of another round of purchases, we do not have high expectations for the market during the New Year period, especially in the context of healthy funding. The average return in January (+3.3%) is relatively similar to December (+4.8%), and we expect spot prices to remain in this range in the short term until a rebound begins in February.
Options flow also reflects similar sentiment, with front-end volatility gradually declining, while risk reversals mainly show strong demand for call options in March, partly due to a large purchase of March options last Friday. [Original link]
