Cryptos: 12,944
Exchanges: 221
Dominance: BTC: 38.70% ETH: 16.56%
ETH Gas: 6 Gwei
  • Low: 4 Gwei
  • Average: 6 Gwei
  • High: 6 Gwei
  • Data from Etherscan.
24H Spot Vol.: $80,359,910,569.70
24H Derivatives Vol.: $105,036,080,312.64
Global Open Interest: $42,494,313,095.49
English
English 中文

TI Weekly Options Market : Low Volatility,High Risk

TI Research
TI Weekly Options Market : Low Volatility,High Risk  https://unsplash.com/

In 2021 Q3, the crypto asset industry will usher in another wave of market conditions. The innovation of DeFi 2.0 represented by Olypmus and Convex has attracted many investors to participate. The newly added amount of pledge has brought about a decrease in supply, and the incremental funds can easily drive the price of encrypted assets such as Bitcoin to new highs. As the slope of staking coins gradually flattened, Ethereum's bearish sentiment gradually increased.

Table of Contents
  1. Bitcoin
  2. Ethereum
  3. Conclusion

Summarizing the data of last week's market, we find that:

  • The volatility of bitcoin price moved to 50% last week;
  • long-term holders are spending on-chain bitcoins;
  • Put options on Ethereum with a strike price of $3,000 were heavily allocated last week.

Bitcoin

From the perspective of option position structure, we can see that bitcoin option positions move to the middle area. The Federal Reserve announced in November that it will reduce the scale of bond purchases. In an environment where the liquidity margin is tightening, it is recommended that investors pay attention to the future issuance of stablecoins on the chain.

According to the on-chain data presented by Glassnode, long-term holders are spending on-chain bitcoins. The speed of this expenditure is very obvious. Based on what we have tracked in the weekly report, this is an obvious leading indicator.

TokenInsight analyzed the volatility of Bitcoin in a previous report, and the average value of Bitcoin volatility is around 70%. After the volatility lows of this round of bull market, there are often substantial adjustments in spot prices. From the perspective of Bitcoin's volatility, this is a mean return process

Ethereum

In the past seven days, the trend of implied volatility to fall is very obvious. In a low-volatility environment, the impact of potential divergence on the market will be severe. From the perspective of position structure, options investors are not so optimistic about Ethereum. Put options on Ethereum with a strike price of $3,000 were heavily allocated last week. No matter in terms of contract or premium, the option position structure of Ethereum is not active.

From the perspective of deep-level market data, the implied volatility is gradually decreasing, and market sentiment is relatively weak. At the same time, the skew of Ethereum options changed from positive to negative. After investors start trade expectations, risk appetite has already converged, and there may be downside risks in the market.

Conclusion

DeFi 2.0 is the factor of this round of market changes, Ethereum once again allows the market to recognize its innovative value. As we mentioned in the previous weekly report, at the beginning of November, Meme tokens also ushered in market conditions, and investor optimism is not conducive to the healthy operation of the market. In the long run, the overall market cap of cryptos has limited upside.

Options
TI Research

TokenInsight is a data and research organization for the digital asset market. TI provides comprehensive asset-related data and comprehensive and timely information and research services for digital assets.

The news, articles, reports or other information we provide are based on public sources considered to be reliable, but TokenInsight does not guarantee the accuracy or completeness of any information contained herein. The news/articles/reports or other information had been prepared for informative purposes only and does not constitute an offer or a recommendation to purchase, hold, or sell any digital assets (cryptocurrencies, coins, and tokens) or to engage in any investment activities. Any opinions or expressions herein reflect a judgment made as of the date of publication, and TokenInsight reserves the right to withdraw or amend its acknowledgment at any time in its sole discretion. TokenInsight will periodically or irregularly track the subjects of news/articles/reports or other information we provide to determine whether to adjust the acknowledgement and will publish them in a timely manner.

We adhere to high standards and values of reporting news, and we do our best to be objective and unbiased at all times.

TokenInsight takes its due diligence to ensure news/articles/reports or other information we provide a true and fair view without potential influences of any third party. There is no association between TokenInsight and the subject referred in the contents which would harm the objectivity, independence, and impartiality of the reporting.

Trading and investing in digital assets (cryptocurrencies, coins, and tokens) may involve significant risks including price volatility and illiquidity. Investors should be fully aware of the potential risks and are not to construe the content of the report as the only information for investment activities. None of the products or TokenInsight Inc, nor any of its authors or employees shall be liable to any party for its direct or indirect losses alleged to have been suffered on account thereof.

All rights reserved to TokenInsight.