#USCryptoReserve
Bitcoin Could Move $5K After White House Crypto Summit; ETH and SOL Volatility Likely:STS Digital
What to know:
The White House crypto summit could trigger heightened trading activity.
Rumors suggest Trump may announce a strategic BTC reserve at the summit.
Options markets indicate potential volatility in BTC, ETH, and SOL post-summit.
If you plan to disconnect from trading screens this weekend, think twice. Analysis from digital assets trading firm STS Digital suggests that Friday's White House crypto summit could lead to heightened activity.
U.S. President Donald Trump, who promised a strategic crypto reserve in the lead-up to the November election, will host top players from the industry, including Coinbase, Chainlink and Exodus
The latest rumor suggests that at the summit, Trump may announce the creation of a strategic bitcoin (BTC) reserve, shifting away from the Sunday disclosure that hinted at the basket of altcoins like XRP, Cardano"s ADA and Solana (SOL) along with BTC and ether (ETH) as the core.
The pricing of BTC, ETH and SOL options on Deribit suggests traders are bracing for a volatile weekend in the aftermath of the summit..
Options markets are showing the nerves (and illiquidity) going into the weekend and the raft of potentials. The Friday vs Saturday IV [implied volatility] Spread is nearly 25 vols wide across the board with Friday expiries missing the expected variance," Jeff Anderson, head of Asia at STS Digital, told CoinDesk.
Implied volatility, a metric derived from the pricing of options, indicates how much traders expect the asset's price to fluctuate over a specific period. Options are derivative contracts that give the purchaser the right to buy or sell the underlying asset at a predetermined price at a later date.