Derivatives traders are expecting “unprecedented” volatility in the Bitcoin market, according to Bitfinex analysts.
As the industry anxiously awaits news from the U.S. Securities and Exchange Commission on more than a dozen proposed spot Bitcoin ETF filings, signals from the options market suggest that derivatives traders are currently expecting higher volatility than observed throughout 2023.
“Traders are bracing for a possible unprecedented move in the price of Bitcoin, based on signals from the options market,” Bitfinex analysts said.
The expectations come amid record options trading volume in December and ahead of possible approval of a spot Bitcoin ETF by U.S. financial regulators. (The Block)