#NFPWatch
Will the level of Bitcoin volatility continue to fall?
🛬🛬🛬🛬🛬✨✨✨$BTC
In the last two months, the price of Bitcoin has remained remarkably stable, trading within a narrow range between $93,000 and $111,000. This stability contrasts with previous years, when daily fluctuations of 5% or even 10% were common.
Currently, the price of the leading cryptocurrency is moving within that same range. This Thursday, for example, it briefly surpassed $110,000 before retreating again towards $109,000.
#TrumpVsMusk Market experts, such as David Lawant from FalconX, attribute this lower volatility to the rise of the strategy known as "covered call overwriting." In this approach, Bitcoin holders sell call options to generate income, which establishes price ceilings and reduces the amplitude of movements.
According to Lawant, this reflects a shift in the profile of options investors. Previously, those buying calls seeking upward leverage predominated; now there is growth among those looking to mitigate fluctuations and obtain more stable income.
Whether this is the main cause or not, the truth is that Bitcoin's lower volatility seems to be consolidating. Nevertheless, it cannot be ruled out that this is a temporary phenomenon, conditioned by the current characteristics of the crypto market.