Matrixport: Expectations of volatility in the options market have reached a peak before the US election

According to the latest weekly report from Matrixport, the macroeconomic and market sentiment fluctuations have led to the return of global capital to the traditional financial market, exacerbating the downward pressure on crypto assets. The linkage between US stocks and non-farm data has driven a short-term upward trend in BTC, but as a risk asset, BTC has retreated along with US stocks. Tokens with smaller market capitalization have outperformed BTC, indicating that the crypto market still has a high degree of speculation during the period of capital inflow. BTC is fluctuating around $60,000, with significant selling pressure and has not yet formed a stable upward trend. ETH demand is weak, and although decentralized applications provide support, its price performance is inferior to BTC. The increase in global economic uncertainty has driven an increase in the volatility of the options market, and institutions are using options to hedge market risks. Before the US presidential election in November, the expected volatility in the options market has reached a peak, and institutions are avoiding violent fluctuations through early deployment. The launch of Bitcoin ETFs has activated the crypto options market, and institutions are inclined to profit from volatility trading. The decrease in crypto arbitrage opportunities has led capital to shift towards the traditional financial market, resulting in tight liquidity, and volatility trading has become an important strategy.