Bitcoin and Ethereum are stuck in a range with no clear direction during today’s trading session. Crypto market uncertainty has rattled long and short positions, but one sector is thriving in the current conditions.
At the time of writing, Bitcoin is trading at $19,360 with sideways movement across the board. Ethereum is showing similar price action in this choppy environment, with most cryptocurrencies in the top 10 losing or sideways.
BTC price is moving sideways on the daily chart. Source: BTCUSDT trade view
2022 will destroy Bitcoin and global markets
According to a report by trading desk QCP Capital, this year has been the worst year for investors with a cross-asset portfolio. If an investor owns bitcoin, stocks, and gold as part of their strategy, their capital would be in the red.
As can be seen in the chart below, the only assets to post gains are those in the energy sector, with crude oil and natural gas taking the lead. The former was the best performer in 2022 with a positive 34%, followed by 4% for Crude Oil (WTI).
The crypto market has been the biggest loser in the current macroeconomic conditions. Bitcoin and Ethereum posted 66% and 72% losses, respectively. In traditional markets, only the Nasdaq 100 has posted a similar 40% loss. QCP Capital wrote:
Outside of energy, the breadth and correlation of underperformance is astounding – every single macro financial benchmark is underwater in real terms (…). Today, with every category of fixed income producing negative real returns, there was essentially nowhere to hide and beat inflation this year.
Source: QCP Capital
In this environment, Bitcoin investors and traditional investors suffered the least losses by keeping their capital in US dollars. The currency hit its highest level in 20 years as measured by the DXY Index (DXY), wreaking havoc among other assets and national currencies.
The only safe haven for BTC and ETH investors
Despite the bear market, the options sector is booming with its high acceptance. Institutional investors recognize that BTC and ETH have constant speculative markets that are taking key options metrics to new highs. Added QCP Capital:
(…) Crypto options trading volume and open interest (OI) have held up so well this year, amid a crypto winter that has seen the volume of other crypto asset classes fall between 70% and 90%. In Q3, ETH options OI actually broke their all-time highs! While BTC OI has also held up comparatively well.
Source: QCP Capital
In this choppy and unclear market, Smart Money relies on spikes in volatility and collects premiums in the options sector. The trading house claims that even “vanilla” strategies were able to generate profits under these conditions.
The status quo in global markets is expected to remain in place, allowing options traders to maintain their edge amid upcoming volatility from macroeconomic events.
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