Bloomberg News reports that aside from looking for a quick fix to grow rich quickly, one of the greatest attractions for one’s trading crypto has been the capacity to earn profits even amidst wild price oscillations. And now, with volatility vanishing, at least for the time being, both amateurs and veterans are changing strategies with the crypto winter seemingly dragging on.
A gauge for Bitcoin’s volatility has plunged to the lowest level since April, reaching a figure of 61 on Friday. This is a far cry from the 140 that it had struck in May when the Terra stablecoin ecosystem. After attaining an all-time high of around $69,000 in November, the greatest digital asset market value was found trading around a narrow range of approximately $20,000 since June.
This, in turn, raises the question, what are the crypto traders, as well as the investors, up to since they are used to the upheavals of the asset class?
Bitcoin Volatility Plunges
There were several traders and investors that Bloomberg News spoke to about what they have been up to stay afloat during the chill. These are a few strategies that many have pointed out.
Selling Options
Julian Koh, the co-founder, and chief executive officer of Ribbon Finance, a structured investment product for DeFi protocol, reveals that there has been an increased demand for selling options, which could let people make money in the sideways market.
Staking
Steven McClurg, the co-founder, and chief investment officer at Valkyrie Investments, a digital asset fund manager, has experienced risk off most of the year. However, he also stated that it had hit a buy whenever Bitcoin was between $17,000 and $18,000. As such, they have been waiting for such an opportunity. He mentioned Avalanche, which is a token that he prefers. This is because this token had taken a big hit at the beginning of this year. And staking and buying it was found to help individuals earn about 8% in the present market conditions.
Playing a Long Game
With Bitcoin currently trading, it does make sense to go long. This was revealed by Zaheer Ebtikar, who is associated with the crypto fund LedgerPrime, as a portfolio manager. He has witnessed the so-called “vol crush” in the market, which he likened to the last halving event of Bitcoin in 2020. However, at some point, it is assumed that volatility might become appealing, thereby letting the range break, wherein the chances of the volume surging again are possible.
