- Bitcoin yield has reached 23%, the start of the year.
- BSV has fallen to fifth within the total market capitalization rankings, one position behind BCH.
- As the BSV surge, this week had driven the mainstream currency market, making Bitcoin’s market capitalization share fall rapidly.
BSV took off from around $ 180 on January 14 and skyrocketed higher than $ 450. On the day’s total market capitalization list, it surpassed EOS, LTC, USDT, and, therefore, the previous rival BCH one when another, rising from eighth to fourth.
At the same time, 175,000 active addresses harvested that day, more than twice the maximum amount as BCH. At present, BSV has fallen to fifth within the total market capitalization rankings, one position behind BCH.
The robust commercialism sentiment of the market perceived from numerous aspects. Related to the market recovery could be a sharp rise in commercialism volume within the derivatives market.
Knowledge from the statistics web site Skew shows that the world BTC derivatives commercialism volume exceeded U.S. $ twenty five billion on Jan ordinal, of that U.S. $ seven.1 billion came from the OKEx platform, that was conjointly the best commercialism day since October 26.
As the BSV surge, this week had driven the mainstream currency market, making Bitcoin’s market capitalization share fall rapidly. Presently, the Kline formed by this market share ratio has entered the oversold range in terms of the RSI indicator.
The last time this happened was in early 2019. The market share of the lowest 66.3% is also the weakest since August last year, and the value continues to trend downward.
If this short-term consolidation of BTC occurs according to the expected trend, and the mid-line fluctuates, options may be a better tool to achieve risk control and gain profits.
The total amount of open positions has accumulated in the past few weeks, and when the market comes, a serial burst may form. This will make the price fluctuations more violent.
Concluding, there are two simple ways to make long volatility:
Firstly, one should buy a Straddle. Thie strategy to buy ATM parity call and put options simultaneously in the next week or quarter might help the market to move significantly in either direction.
The result will be a loss in one transaction and hopes to make a substantial profit in another trade.
Lastly, one dan buys a Strangle-similar to the first one, except that both sides purchase OTM vacant options, which also reduces the upfront purchase cost.
The difference between the expiration dates is that the time loss of the sub-period option is relatively significant, and the purchase cost of quarterly options is relatively high.
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