Most cryptocurrencies along with Bitcoin have already started plummeting- which has resulted in sporadic activity in the options markets. This has resulted in traders repositioning themselves within the volatility that has increased. BTC started trading at a price of $44,211 after losing out on 2.8% over a single day. Ethereum moved to a trading point of $3,376 with a red 1% over a single day.
Bitcoin dumps, rest of crypto follows
Bitcoin was down by 2.8% on Monday and went as low as $42,269. But, then it went above the moving average of 10-hour, and then below the mark of 50-days. Jean-Marc Bonnefous, the MP of Tellurian Capital mentioned that the last three months have seen the cryptocurrency consolidating at a range of $50,000- with the volatility shifting between $45,000 to $60,000. He further stated that the cryptocurrency is currently in a supportive trend but quite a few participants are already in bitcoin- so there needs to be more bullish news that will help break the range.
The volatility of Bitcoin has gone up, according to data from CoinDesk Research. Sunday reports claim that the volatility of BTC over the last one month was more than 77%- the most it has been since the 24th of March. The CEO of Genesis Volatility Greg Magadini has also started tracking the movements in the market of the crypto sector by utilizing the data provided by bellwether derivatives exchange Deribit. Just the previous week, the DVOL margin hit 160, which is the highest variability level that has been reached over the last month.
Magadini also added that the Twitter activity of Elon Musk and the subsequent drop of Bitcoin has proven that the options market for BTC is correct. Currently, the options markets for the cryptocurrency are very expensive with traders buying put options out of panic.
