Matrixport, in its report published on September 24, highlighted Bitcoin’s nature as a volatile asset while noting that its 30-day return rates have remained within a 20% range over the past 18 months. This situation confirms the cryptocurrency analysis company’s earlier recommendation of options selling strategies at the beginning of 2023, predicting a further decrease in volatility. Matrixport specifically emphasized the opportunity for investors to gain additional income through the sale of out-of-the-money put and call options.
Income Opportunities through Options Selling
According to Matrixport’s report, Bitcoin’s price movements are largely confined within a narrow range. With this trend expected to continue, investors seeking additional profits are encouraged to capitalize on the sale of out-of-the-money options. Selling out-of-the-money put and call options provides extra income to investors, particularly if Bitcoin $102,908 does not exceed a specific price level.
However, the report also mentions that this strategy may occasionally result in losses. Nonetheless, the overall declining trend in volatility presents an opportunity to potentially offset these losses in the long run. Matrixport believes that this strategy will yield successful outcomes as long as the trend of decreasing Bitcoin volatility continues.
Increased Institutional Participation Expected with Spot Bitcoin ETFs
The report further forecasts that the introduction of options related to spot Bitcoin ETFs will attract more institutional investors to the market, which may tighten volatility even further. This scenario could enhance the effectiveness of existing options strategies and broaden the income-generating opportunities for Bitcoin investors.
Matrixport indicates that Bitcoin investors can continue to generate additional income through volatility selling, asserting the ongoing viability of this strategy. With anticipated increases in institutional participation and the presence of spot ETFs, volatility is expected to decrease further, making options selling strategies even more appealing.
In this context, Matrixport’s recommendation for options selling strategies stands out as an effective method for Bitcoin investors to earn from volatility.