“Hi Bitcoin, do something!”
The viral meme, starring a stick figure that pushes the soil and that represents the need for reaction, could summarize the current scene in digital assets desks during the slow and early summer.
Of course, Bitcoin
It simply reaches new highs and is still quoted above $ 100,000, but the P&L is decreasing daily for short -term volatility hunters.
“Bitcoin’s volatility has continued to tend lower, both in measures made and implicit, even when the asset reaches the new historical maximums. This decrease in volatility is particularly remarkable in the midst of historically high prices levels,” said Nydig Research in a recent note shared with Coinridesk.
And despite the winds against macro and geopolitics that reach traditional assets with force, Bitcoin has entered a summer atmosphere.
“With the market that now enters the summer months typically quieter, this bearish trend can persist in the short term,” Nydig added.
Of course, this is perhaps a positive tendency for Bitcoin, since it represents a more matured and potentially speaks of its original “value warehouse” promise, since the price reaches new new highs.
However, merchants love volatility, as the movement is greater, the greater the opportunities of P&L. While new records can be excellent for long -term Hodlers, for short -term merchants, those juicy outbreaks are being difficult to earn money.
Why calm?
So what is promoting these quiet price shares?
Nydig is attributing it to a greater demand from Bitcoin Treasury companies, which seem to be appearing everywhere, and an increase in sophisticated commercial strategies, such as the options that overwritten, as well as other forms of sale of volatility.
The market is becoming more professional and, unless we see some true black swan events (FTX, someone?) For cryptography, prices will continue to keep calm.
The opportunity
But not everything is lost: there are always opportunities to earn money even when it is not as lucrative as it seems.
“The decrease in volatility has caused both exposure to calls and down protection through disadvantage through generals themselves,” Nydig said.
Translation: Coverage and catalyst works are where money could be in this market. If one thinks that something big is approaching, this is perhaps the moment of positioning itself with directional bets. And some greats come.
“For merchants who anticipate catalysts who move in the market, such as the DEC decision about the conversion of GDLC (July 2), the conclusion of the suspension of 90 -day rates (July 8), or the deadline for findings of the Criptoe working group (July 22), this presents a profitable opportunity to position itself for directional movements,” Nydig said.
Then, Bitcoin’s summer pause may not be a total dead zone; Rather, it is a configuration for those who are willing to play the patience game and cover themselves accordingly to trade with potential events that move the market.
