Here’s What Crypto Traders Are Doing With Volatility Gone
- Bitcoin has been a in narrow range since spring price collapse
- Some are selling options, others resort to staking for returns
A customer scans the QR code of a purchase receipt from a Bitcoin ATM in Barcelona, Spain.
Photographer: Angel Garcia/BloombergBesides dangling the opportunity to get rich quickly, one of the biggest attractions for crypto traders was the ability to profit from wild price swings. Now with volatility all but gone -- at least for now -- both professionals and amateurs are altering their strategies as the crypto winter drags on.
A volatility gauge for Bitcoin has dropped in recent days to its lowest level since April, reaching 61 on Friday. That’s a far cry from the 140 it hit in May amid the collapse of the Terra stablecoin ecosystem. After surging to an all-time high of almost $69,000 in November, the largest digital asset by market value has been trading in a narrow range of around $20,000 since June.