Analysts at the trading company QCP Capital have identified the reason for the bitcoin correction on the market, considering Donald Trump's inauguration speech as such. Experts pointed out that during the solemn ceremony on Capitol Hill, traders were actively buying up options on volatility in the near segment of the market.
During the day, volatility indicators for options expiring on Friday fluctuated in the range of 25 ox. This means that volatility itself demonstrated extremely unstable behavior. For comparison, on normal trading days this indicator rarely exceeds 5-7 ox. Such a sharp increase indicates exceptional uncertainty in the market, analysts noted.
After it became known that Donald Trump did not mention cryptocurrencies in his speech, there was a not sharp, but still significant correction in the cryptocurrency market, as well as in Bitcoin itself.
At the same time, experts noted that the Bitcoin volatility curve has remained stable in the medium term. According to analysts, the Bitcoin rate may be subject to a significant correction over the next few weeks, but then the market situation will stabilize.
