The decisions taken by the US Securities and Stock Exchange Commission (SEC) 
$113,966.40 And it is predicted that the crypto money market can lead to a different period in the volatility. The SEC has increased option position limits for most Bitcoin ETF. Experts say that this move can pave the way for more comprehensive and sustainable option activities on the market by allowing investors to keep more contract.
Effects on option strategies and price fluctuations
According to evaluations made by Nydig Research, it is stated that the sales of ‘Covered Call’ (covered purchase options) to generate a scaled revenue with the new regulation may increase. This strategy allows investors to return from Bitcoin assets they have, while limiting the rise potential and naturally causing price movements to be suppressed when applied with large portfolios.
In the analysis published by Nydig, “This increase opens the door to investors have ten times more contracts. Covered Call strategies give the best result especially on large scales”.
Decreasing volatility in markets
In the last four years, Bitcoin’s level of volatility has tended to decrease. According to the Deribit BTC Volatility Index, this value fell from approximately 90 points to 38 points. However, Bitcoin’s volatility is still at higher levels than traditional classes and bonds. This provides an attractive opportunity for some investors, while bringing certain risks for large corporate investors looking for risk balance.
NYDIG analysts, “As volatility decreases, corporate portfolios looking for a regular risk position are expected to evaluate this existence more. This dynamic, spot markets can support the demand for markets,” he said.
“AS Volatility Declines, The Asset Becomes More Investable for Institutional Portfolios Seeking Risk Exposure. This Dynamic Could Reinforce Spot Demand evaluated Nydıg’s analysts.
Corporate interest and future demand
Famous investor Ray Dalio argued that due to increasing debt levels in the United States, it would be appropriate to give gold and crypto currencies in portfolios at a rate of 15 percent.
Ray Dalio: “It may be necessary to allocate a 15 percent share of gold and crypto in portfolios due to increasing debt in the United States”.
Nydig says that the decrease in volatility in Bitcoin may lead to an increase in investor interest. According to the analysis, with a decrease in price fluctuations, investors can find a confidence environment and increase in the increase in derivative transactions in the spot market can also trigger purchases.
Nydig: “Fall volatility can trigger increased spot purchases and this can create a strong demand cycle.”
In the future, expert circles are united in the opinion that the last moves of the SEC and corporate interest can create a sustainable demand. However, there is no clear foresight about how this process will be shaped. The effect of market conditions, investor behaviors and regulations is closely monitored.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
