PANews December 30 news, Singapore cryptocurrency investment institution QCP Capital today stated that, as expected, we witnessed a typical volatility sell-off after the quarterly option expiration, as volatility has dropped by 2-3 volatility points since the record option expiration on Friday.
Although Bitcoin is consolidating near the bottom of its monthly trading range and the monthly return is flat, both Bitcoin and Ethereum performed quite well in the fourth quarter: Bitcoin rose by 48%, while Ethereum rose by 30%. However, it may be too early to summarize this quarter. Just yesterday, Saylor released his Bitcoin purchase tracker again, which may indicate another round of upcoming purchases, further supporting prices.
Despite the possibility of another round of purchases, we remain skeptical about the likelihood of significant volatility during the New Year period, especially considering the healthy funding conditions. The average return rate in January (+3.3%) is relatively close to December (+4.8%), and we can expect that spot prices will remain within this range in the short term before starting to rise again in February.
The options trading flow also reflects a similar sentiment, with front-end volatility gradually decreasing, while the risk reversal quotes for March call options are the highest, partly due to the large volume of March-expiring call options purchased last Friday (120,000 to 130,000 contracts).
