Matrixport: Bitcoin's narrow fluctuations drive selling options strategy, with volatility expected to continue declining

ChainCatcher message, Matrixport released a chart stating: Although Bitcoin is inherently volatile, the 30-day rolling return shows that its price has basically remained within a ±20% fluctuation range over the past 18 months. We expect volatility to further decrease, so at the beginning of 2023, we recommended adopting a selling options strategy, including selling out-of-the-money put and call options to gain additional income.

Even though this strategy may incur losses, it still performs well overall as volatility declines. With the launch of Bitcoin ETF-related options, it is expected that more institutional participants will enter the market, further compressing volatility. Therefore, selling volatility remains a viable strategy for Bitcoin holders to gain additional income.