The Potential Impact of Bitcoin ETF Approval on Traders
Bitcoin’s current price sits at $37,400, showing a 1% profit in the last 24 hours and a 3% profit over the previous week. Despite increased selling pressure, the cryptocurrency has managed to hold the critical level of $37,000.
The Lucrative Strategy In Anticipation Of Bitcoin ETF Approval
With Bitcoin’s value soaring by 125% this year, traders are adopting a new strategy in anticipation of the Bitcoin ETF. Analyst Markus Thielen explains that despite the rally, Bitcoin’s volatility remains relatively low compared to its historical average. This is due to institutional players entering the market and reducing interest in leveraged Bitcoin options.
Thielen suggests selling strangles as a profitable strategy during low-risk periods, offering traders an opportunity before institutional influence takes over.
Institutional Involvement Expected to Stabilize Bitcoin Market
The launch of the Bitcoin ETF is expected to bring more balance to the put/call ratio in the market. Traders can take advantage of this equilibrium by implementing a sell-put strategy.
After the ETF approval phase, institutional players will likely sell volatility, leading to reduced price fluctuations and making volatility-based strategies less effective. The correlation between Bitcoin and broader market indicators like the VIX index is also expected to narrow, allowing traders to time their trades more effectively.
Hot Take: Capitalizing on the Current Market Conditions
As the approval of a Bitcoin ETF draws nearer and institutional participation increases, traders can benefit from selling strangles as a strategic approach. By taking advantage of the current market conditions before institutional influence takes hold, savvy traders can maximize their profits.
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