On the evening of October 15th at 8 pm, during the live broadcast on the official Matrixport YouTube channel, Matrixport's Asset Management Director Daniel conducted an in-depth analysis of the market performance of BTC and ETH in the past week (October 10th to October 14th), discussed the impact of the global political environment on the crypto market, and the practical operation of the accumulator option tool. Daniel analyzed in detail the reasons for the market rebound, especially the launch of BTC ETF options and the impact of global economic and political events, and provided investors with various strategies to cope with market volatility. At the same time, he introduced the accumulator option tool to help investors gradually build positions at a discounted price during market fluctuations.
The live content is as follows
From October 10th to October 14th, BTC and ETH rebounded significantly driven by China's economic stimulus policies and the improvement of the global economic environment. The BTC price quickly rose from around $60,000 to $64,500 and continued to rise, breaking through the $66,000 mark, with an increase of 7.5%-10%. Although the listing time is still pending, the launch of BTC ETF options is expected to help reduce market volatility and attract institutional capital. Against the backdrop of global politics, especially the uncertainty of the US election, the demand for crypto assets as a hedge has increased, further highlighting the hedging attributes of BTC. Meanwhile, ETH has shown long-term investment opportunities with its Layer 2 expansion and the potential of decentralized finance (DeFi) applications.
Analysis of the reasons for market volatility
- Market rebound phenomenon
Recently, cryptocurrencies such as BTC and ETH have rebounded significantly, mainly due to China's economic stimulus policies and the improvement of the global economic environment. Especially in the past week, the BTC price quickly rebounded from the previous low of $58,000 to $59,000, with a weekly increase of 5%-6%, and the current price is close to the historical high.
- Range fluctuation and market consensus
Since April this year, the market has been in a range fluctuation state, but the price of BTC has not fallen below the lower limit, indicating a strong consensus among investors. However, further market upside still requires external capital support, and the current capital size is not enough to sustain long-term unilateral upward trend.
- Policy drive
China's new fiscal policy has played an important role in the market rebound. Although the A-share market lacks the driving force for rebound, the crypto market has received the support of some capital inflows, and the rise of the US stock market has further increased the demand for risky assets. The hedging attribute of BTC as "digital gold" has been further strengthened, becoming the focus of market attention.
- Global political impact
The US presidential election and global political events have increased market uncertainty, and the implied volatility of November options has risen significantly. The decentralization and 24-hour uninterrupted trading of the crypto market make it an important tool for investors to avoid global risks. Investors use crypto assets such as BTC to hedge political risks, especially during the election period, further highlighting the hedging value of BTC.
The options market and institutional behavior in the current context
- Impact of the expected launch of BTC ETF options
With the US Securities and Exchange Commission approving the listing and trading of BTC ETF options in September, although the listing time is still pending, the expected launch of BTC ETF options is an important factor driving the recent price increase. It can be expected that the increased liquidity of ETFs will attract more institutional investors to enter the market. The expansion of the options market provides investors with more hedging tools and risk management strategies, further enhancing market confidence.
- Reduced market volatility
At the same time, the launch of ETF option products is expected to reduce the volatility of the BTC market. The experience of traditional financial markets shows that option products usually make the market more stable. Institutional investors adopt a high-selling and low-buying strategy instead of leveraged trading, and with the launch of ETF options, the liquidity and stability of the market will be further enhanced, attracting long-term capital to enter the market.
- Increased global liquidity
Driven by the options market, the global liquidity of BTC trading has increased significantly, especially for BTC, which is less associated with the traditional financial system, benefiting from the expansion of global liquidity. The inflow of funds into cryptocurrencies such as BTC indicates that investors are increasingly inclined to use crypto assets as a hedging tool, and the stability of the market has been enhanced.
Investment directions to watch
- The long-term potential of the ETH market remains optimistic
Although there may be price fluctuations in the short term, the long-term prospects of ETH are widely favored. As an important infrastructure for decentralized applications (DeFi) and financial innovation, its Layer 2 expansion technology and the prospects of decentralized finance applications have received widespread attention. Many investors have bought a large amount at the market low and used it for staking, showing confidence in its long-term potential.
- The difference in pricing logic between BTC and ETH provides differentiated investment opportunities
The pricing logic of BTC and ETH is different: BTC is more dependent on its scarcity and its close connection with global monetary policy, similar to digital gold; while the value of ETH depends on its on-chain active user count and application ecology, similar to copper or crude oil. Therefore, although both belong to crypto assets, their market performance and investment logic are different. Investors should choose investment strategies based on the characteristics of different assets.
- Accumulator option tool and discounted position-building strategy
The accumulator option tool (AQ) is a powerful investment tool in the current market environment. This tool allows investors to periodically purchase cryptocurrencies such as BTC at a discounted price, especially when the market is fluctuating or the price is falling, investors can set the strike price to gradually build positions at a lower price.
The typical operation of the accumulator option product includes regularly purchasing 1-3 BTC per week or month. If the spot price is lower than the strike price (usually 76%-89% of the spot price), the investor can purchase more assets at a discounted price. If the market price exceeds the knockout price, the product will be terminated early, and the investor will profit from the accumulated low-priced positions.
Through the accumulator option tool, investors can flexibly respond to the market volatility of cryptocurrencies such as BTC and ETH, seize the opportunity of discounted position-building, and thereby obtain stable returns when the market rebounds.
Summary
This meeting conducted an in-depth discussion on the reasons for the market volatility of BTC and ETH, the impact of the expansion of the options market on market stability, and investment opportunities in the current market environment. The meeting pointed out that China's fiscal policy and global political events such as the US presidential election are the main reasons for the recent market volatility, and the launch of BTC ETF options has further driven market liquidity and reduced market volatility. ETH, as the core of decentralized applications, still has huge long-term investment potential.The accumulator option tool provides investors with the opportunity to gradually build positions at a discounted price during market fluctuations, which is suitable for use in the current market with high uncertainty. Investors can flexibly apply the accumulator option to invest in BTC and ETH based on their different characteristics, and thereby obtain stable returns when the market rebounds.
More exciting content can be viewed in the YouTube live replay:https://youtube.com/live/Czl0LGpNzZk?feature=share
About Matrixport Weekly Market Insights
【Matrixport Weekly Market Insights】is a new interactive knowledge-sharing column launched by Matrixport, which is live-streamed every week on theMatrixport official YouTube channel. This column will regularly invite industry product experts, top analysts and KOLs to discuss the investment logic in different market conditions and share investment insights, helping users achieve asset appreciation.
Subscribe to theMatrixport YouTube channelnow to keep up with the latest market dynamics. 'Block' must be translated into 'Block'. 'DeFi' must be translated into 'DeFi'. 'Layer 2' must be translated into 'Layer 2'. 'TRON' must be translated into 'TRON'. 'BTC' must be translated into 'BTC'. 'ETH' must be translated into 'ETH'. 'HT' must be translated into 'HT'. 'OP' must be translated into 'OP'. 'AR' must be translated into 'AR'. 'RON' must be translated into 'RON'. 'ONG' must be translated into 'ONG'.
Disclaimer: The above content does not constitute investment advice, offer to sell or invitation to purchase for residents of the Hong Kong Special Administrative Region, the United States, Singapore, or any other country or region where such offer or invitation may be prohibited by law. Transactions in digital assets may carry significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided herein.
'Block' must be translated into 'Block'. 'DeFi' must be translated into 'DeFi'. 'Layer 2' must be translated into 'Layer 2'. 'TRON' must be translated into 'TRON'. 'BTC' must be translated into 'BTC'. 'ETH' must be translated into 'ETH'. 'HT' must be translated into 'HT'. 'OP' must be translated into 'OP'. 'AR' must be translated into 'AR'. 'RON' must be translated into 'RON'. 'ONG' must be translated into 'ONG'.
