Matrixport: Crypto Traders Shift to Range-Bound Strategies
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Matrixport's daily chart analysis points out that despite Trump once again issuing tariff threats, the implied volatility of bitcoin and ethereum has only risen slightly. Since mid-November, the volatility of the cryptocurrency market has dropped significantly, with volatility points decreasing by about 18 to 25 over the past two months, showing a clear compression trend. Traders have not chased upside gains or hedged downside risks through options tools, but have instead increased spot holdings and sold call options in the ethereum market to achieve volatility arbitrage in a low-leverage, range-bound market environment.
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