Matrixport: Bitcoin Narrow Volatility Drives Sell Option Strategies, Volatility Expected to Continue Declining

According to Bitget, Matrixport stated in its latest report, “While Bitcoin is naturally volatile, 30-day rolling returns show that its price has largely remained within a +20% float over the past 18 months. We expect volatility to decrease further, and therefore recommend a sell options strategy in early 2023, including selling deflated puts and calls, to capture additional gains. Even though there will be losses in this strategy, it will still outperform overall as volatility moves lower. With the introduction of options related to the Bitcoin ETF, it is expected that more institutional players will enter the market, further compressing volatility. As a result, selling volatility remains a viable strategy for bitcoin holders to capture additional gains.