“Hey Bitcoin, do something!”
The same viral – features a figure of stick spice the ground and representing a need for reaction – could simply summarize the current scene of trading offices for digital active ingredients during the slow and early summer days.
Of course, Bitcoin
Just hit new fresh peaks and are still negotiated above $ 100,000, but P&L decreases daily for short-term volatility hunters.
“Bitcoin volatility has continued to decrease, both in the measurements made and implicit, even if the assets reached new peaks of all time. This drop in volatility is particularly remarkable in the middle of historically high price levels,” said Nydig Research in a recent shared note with Coindesk.
And despite the opposite winds of macro and geopolitics hardly hitting traditional active ingredients, Bitcoin has entered a cold summer atmosphere.
“With the market that now enters the month of typically quieter summer, this downward trend may well persist in the short term,” added Nydig.
Of course, it may be a positive trend for Bitcoin because it represents a more mature market and potentially talks about its original promise of “value store” because the price reaches new heights.
However, traders like volatility, the greater the movement, the greater the P&L opportunities. Although fresh records can be excellent for long -term Hodlers, for short -term merchants, these juicy eruptions become difficult to make money.
Why calm?
So, what motivates these calm price actions?
NYDIG The cache on the increased demand for Bitcoin cash companies, which seem to appear everywhere, and an increase in sophisticated trading strategies, such as crushing options, as well as other forms of sale of volatility.
The market becomes more professional, and unless we see real Black Swan events (FTX, anyone?) For the crypto, prices will continue to stay calm.
The opportunity
But everything is not lost – there are always opportunities to earn money even if it is not as lucrative as it seems.
“The drop in volatility has both increased exposure by calls and downward protection via relatively inexpensive puts,” said Nydig.
Translation: cover and catalyst games are where money could be on this market. If we think that something big happens, it may be the time to position with directional bets. And there are some big ones to come.
“For merchants anticipating catalysts that move on the market, such as the DEC decision on GDLC conversion (July 2), the conclusion of the 90 -day price suspension (July 8), or the deadline for the results of the Crypto working group (July 22), this presents a profitable opportunity to position itself for directional movements,” said Nydig.
So, the Bitcoin’s summer lighter may not be a total dead zone; It is rather a configuration for those who are ready to play the game of patience and to bed accordingly to exchange potential events on the market.
