Matrixport Research Institute’s latest study reveals the following key focus areas:
– The realized volatility of BTC is approaching its lowest point in recent years, indicating a potential period of stability. This presents an opportunity for investors to purchase options at lower costs without significant risks. The demand for fiat-to-crypto exchanges has weakened, signaling a potentially calm with relatively low fear of missing out (FOMO) sentiment. Therefore, investors are to adopt a rational positioning strategy.
– BTC option trading shows bullish sentiment as the market anticipates a price by 2025.
– There is a higher likelihood of SEC approval for S1 applications, which could pave the way for ETH ETFs in the near future. As result, the open interest in ETH futures has surged from $7.5 billion to13 billion, with an annualized funding rate increase to 27%.
– While it generally believed that the best time to enter the market is before SEC approval and product launch stages, there tends to be selling behavior after product listings such as Bitcoin futures in December 7, Coinbase IPO in April 2021, Bitcoin ETF based on futures in October 2021, and Bitcoin spot ETF expected in January 4.
However, market sentiment suggests that SEC will soon approve S-1 applications and ETH ETFs may be listed between July and September this year. Once the summer consolidation phase ends, the market is likely to experience another bullish trend. Prudent investors can utilize low volatility environments by protecting their investment portfolios through options or purchasing call options for strategic gains while managing risk exposure through mainstream cryptocurrencies.
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