At 8pm on November 5, in a live broadcast on the official YouTube channel of Matrixport, Daniel, head of Matrixport Asset Management, analyzed the market volatility last week (October 30-November 4). BTC prices fluctuated sharply during the election week, affected by the uncertainty of the US election and the rising risk aversion in the global market. Daniel analyzed the drivers of BTC volatility, changes in hedging demand in the options market, and the support of the market from the continued inflow of institutional funds, and pointed out the potential opportunities and strategies for investors in this volatile market.
The live broadcast content is as follows
Recently, BTC prices have been driven by macro uncertainties such as elections, and volatility has increased significantly. BTC once rose to a high of $73,000, and then fell back quickly due to market expectations. The fierce game between long and short parties and the rising demand for hedging in the options market show that investors are highly sensitive to short-term fluctuations. Overall, BTCs market share is still steadily increasing, showing its relative strength in the high-volatility market.
Analysis of the causes of market fluctuations
The impact of the election on the BTC market
During the US presidential election, the markets focus on the election results led to increased volatility in the global capital market, and the volatility of the crypto asset market was particularly evident. As a safe-haven asset, BTC usually shows high sensitivity during major events. The uncertainty of the election results has triggered traders expectations of large fluctuations in BTC prices, adding short-term volatility risks to the market.
Increased risk aversion in the market
On the eve of the election, CME (Chicago Mercantile Exchange) BTC options data showed that the markets hedging demand for BTCs downward price has increased significantly. The markets aversion to short-term risks shows concerns about BTCs potential pullback, and volatility expectations in the options market have further increased. Market sentiment reminds investors to do risk management in advance to prevent short-term shocks caused by election results.
Options Market and Institutional Behavior in the Current Context
Risk-off signals in the CME options market
As election week approaches, demand in the CME BTC options market has increased as traders increase hedging demand to protect against price volatility caused by the election results. The volatility in this market shows that traders are concerned about a short-term decline in BTC.
Institutional investors’ attention to BTC
Recently, several institutions, including the UK Pension Fund, announced that they would include BTC in their asset portfolios, which marks the rise of BTC in the traditional financial sector. The inflow of institutional funds not only strengthens the long-term support of the BTC market, but also reduces the short-term volatility caused by retail investors. VanEcks model predicts that BTC may be included in the central banks reserve assets in the future, further consolidating its position as a safe-haven asset.
Investment directions worth paying attention to
Long-term BTC holding strategy
BTC is regarded as digital gold. Its anti-inflation and safe-haven properties make it an ideal asset for preserving value in an uncertain macro environment. Long-term holding of BTC can help investors achieve steady appreciation in the face of market fluctuations, especially during election weeks to control risks. For investors who want to preserve value in the crypto market, long-term holding of BTC provides excellent income protection.
Risk aversion and market wait-and-see strategy
Due to the short-term uncertainty caused by the election, investors can choose to wait and see to reduce their risk exposure to market volatility. Re-entering the market when the market environment becomes clearer can help avoid short-term volatility risks and provide investors with stable long-term returns. This strategy is suitable for investors who want to preserve value in the long term, and avoid short-term risks by waiting during volatility.
Summarize
In the context of the current market volatility, the uncertainty of the US election has significantly increased the demand for safe-haven assets, and BTC has attracted much attention due to its safe-haven properties. At the same time, the CME options market shows strong hedging demand, reflecting the short-term markets cautious attitude towards volatility. The continued participation of institutional investors has further strengthened BTCs market position and long-term support.
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About Matrixport Weekly Market Insights
【Matrixport Weekly Market Insights】is a new interactive knowledge sharing column launched by Matrixport, which is broadcast live on the official YouTube channel of Matrixport every week. This column will regularly invite industry product leaders, top analysts and KOLs to discuss investment logic under different market conditions, share investment experiences, and help users realize asset appreciation.
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Disclaimer: The above content does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy to residents of the Hong Kong Special Administrative Region, the United States, Singapore, and other countries or regions where such offers or solicitations may be prohibited by law. Digital asset trading may be extremely risky and volatile. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
