Research Summary
The article discusses the current state of the crypto market, drawing parallels between the price action of Bitcoin in March 2020 and March 2023. The report suggests that the market is returning to regular programming of macro and crypto narratives after the passage of the Debt Ceiling Bill. It also predicts a consolidation phase for Bitcoin, followed by a significant move. The article recommends positioning for this move through long 3m and 6m strangles, especially as optionality has never been cheaper since the crypto options market began in 2019.
Actionable Insights
- Prepare for a significant market move: The report suggests that the market is nearing the end of a consolidation phase, and a significant move is expected. Investors are advised to position for this move.
- Consider long 3m and 6m strangles: Given the current market conditions, the article recommends considering long 3m and 6m strangles, particularly as optionality is at a record low.
- Expect a turn in the implied volatility trend: The report indicates a potential turn in the implied volatility trend, suggesting that investors should start positioning for this change.
