Bitcoin Lull Could Spur Altcoin Rally, With $90K Considered ‘Attractive’ Buying Area
High volatility can be good for option buyers because it increases the chance that the option will be “in-the-money” (profitable) at some point before expiry — creating profit for buyers.
Summary:
Traders anticipate continued volatility in the bitcoin market with a potential shift towards altcoins due to a major options expiry coming up. High volatility in the market can benefit option buyers. Despite Bitcoin’s struggles, there is optimism for a potential rally in altcoins as some analysts see a buying opportunity at the $90,000 level. The overall sentiment is cautious due to various factors affecting the market.
Key Insights:
1. High volatility in the market can be advantageous for option buyers by increasing the likelihood of profitability before expiry.
2. The upcoming major options expiry, with around $20 billion notional value across BTC and ETH options, is expected to impact market dynamics.
3. Market observers believe that a rotation to altcoins from Bitcoin might occur if BTC continues to face challenges below $100,000.
4. While Bitcoin is experiencing a downturn in December, market participants are eyeing a potential buying opportunity at the $90,000 level.
5. Factors such as the U.S. Federal Reserve’s future rate cuts and regulatory concerns are contributing to the cautious market sentiment.
6. Shaurya, a crypto expert, focuses on crypto derivatives, DeFi, market trends, and protocol analysis in Asia and holds a diverse portfolio of cryptocurrencies.
