The Bitcoin options data indicates that despite the recent approval of the ETF, the BTC price continues to experience short-term volatility.
The price of Bitcoin has not changed much in response to the historic first day of trading for the spot Bitcoin ETF on Wall Street.
Bitcoin is trading 0.87 percent lower at $46,080 with a market cap of $902 billion as of press time.
Moreover, the Bitcoin options data indicates a subdued level of trading activity.
Bitcoin Option Elaspse
Greeks.Live, as of January 12, reports that 36,000 Bitcoin options with a Put Call Ratio of 0.9, a Maxpain point of $45,000, and a notional value of $1.68 billion are approaching expiration.
The expected authorization of the Bitcoin Spot ETF took place this week, against the backdrop of persistent misinformation and breaking news, which contributed to the market’s frequent and severe volatility.
As predicted earlier in the week, it appeared that implementing a LONG GAMMA strategy was economically advantageous throughout this time frame.
Short-term implied volatilities (IVs) peaked before the approval of the ETF, while major term IVs declined significantly as a result of market volatility falling short of expectations.
Meanwhile, the adoption of the Bitcoin Spot ETF is expected to gradually increase the amount of capital invested in crypto over an extended time, though short-term uncertainty persists.
Multiple factors may contribute to prolonged and intense volatility, comparable to the fluctuations observed this week.
Bitcoin Active Wallets on the Decline
Santiment, an on-chain data provider, emphasizes the approval of Bitcoin ETFs in addition to Bitcoin options data, indicating a possible trend of a marginal decline in active wallets on Bitcoin’s blockchain.
Since the start of this year 2024, there has been a $0,000 decline in the total number of active Bitcoin wallets.
Although this transition might not have a substantial effect on the price of the cryptocurrency as a whole, Santiment predicts that some traders may choose to switch from their current BTC portfolios to ETF exposure for crypto investment.
The present Bitcoin (BTC) price continues to fail to inspire investor confidence, as the enthusiasm encircling the spot BTC Exchange-Traded Fund (ETF) has not materialized into substantial profits.
