Here Are 2 Ways to Benefit From the Impending Bitcoin Volatility Spike

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Published Jul 5, 2020

Bitcoin’s price action has quickly become unbearable for many traders. As NewsBTC has reported extensively over recent days, the crypto market has come to an absolute standstill. In the past week, the cryptocurrency has traded in a right 5.5% range, with bulls and bears not even attempting to break out of the consolidation. Stepping back, the lack of volatility is further accentuated; For nearly nine weeks now, Bitcoin has traded in the range between $8,500 and $10,000. Recent volatility analyses, however, have suggested an imminent breakout for BTC. As reported by NewsBTC, the recent consolidation has resulted in Bitcoin’s historical volatility index reaching lows not seen since March/April of 2019. For those that don’t remember, here’s a reminder of what happened then: after consolidating around $3,000-4,000 for four months, Bitcoin rocketed $1,000 in a single day. This move — likened to “fireworks” by investors — kickstarted a BTC bull run that sent the asset to $14,000. That’s to say, Bitcoin moved 25% in a single day last time the crypto market was this non-volatile. The implied volatility of the Bitcoin market has also plunged. The measure has reached its lowest value since the day before the 25% surge, economist Alex Krüger recently pointed out. As Investopedia describes, the implied volatility of an asset is “the market’s forecast of a likely movement in a security’s price.” IV is most often derived through options trading. The important takeaway with this data is, periods of extremely low volatility often precede Bitcoin breakouts of macro importance. With Bitcoin coiling for a breakout, traders may be wondering how they can benefit from the impending volatility. While there is a multitude of ways traders can do so, but here are two easily accessible to most cryptocurrency holders:Disclaimer: Readers of this article should use/trade financial products, assets, or platforms mentioned in this article at their own risk. This author and NewsBTC are not liable for any losses incurred while using the financial products or assets mentioned in this article.

All data is taken from the source: https://www.newsbtc.com/
Article Link: https://www.newsbtc.com/2020/07/04/here-are-3-ways-to-benefit-from-impending-bitcoin-volatility/

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Here Are 2 Ways to Benefit From the Impending Bitcoin Volatility Spike

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