The cryptocurrency market, usually prone to large swings in reaction to significant events, barely moved after the release of HBO’s highly anticipated documentary, Money Electric: The Bitcoin Mystery. The film, which promised to uncover the true identity of Bitcoin’s enigmatic creator, Satoshi Nakamoto, turned out to be another in a series of speculative attempts that fell flat. This time, Bitcoin developer Peter Todd was named as Satoshi—an assertion Todd promptly denied before the documentary even aired.
While revelations about Nakamoto’s identity could theoretically spark volatility in crypto markets, this one left traders unimpressed. Bitcoin (BTC) prices remained relatively stable, dropping just 0.45% to hover around $62,150. The broader market, as tracked by the CoinDesk 20 Index, reflected a similar lack of movement, settling at 1,918.40, down 0.63%.
ETFs See Outflows Amid Lackluster Market Activity
In addition to the quiet market response to the HBO reveal, the U.S. market for spot Bitcoin ETFs saw a noticeable outflow. According to data from SoSoValue, these funds recorded over $18 million in withdrawals on Monday alone. Ether (ETH) ETFs were also affected, shedding over $8 million. The tepid market activity comes on the heels of a Chinese government briefing that failed to deliver the hoped-for new economic stimulus measures. China’s stock markets plummeted in response, with the Shanghai Composite Index dropping 3.9% and the Shenzhen Component Index falling 4%.
Traders are now looking to the Federal Reserve’s meeting minutes from September, hoping for insights that could indicate Bitcoin’s next move. U.S. equity markets, meanwhile, rallied, with the S&P 500 rising by 0.97%, reflecting investor optimism. Gold prices remained virtually unchanged at $2,621.91.
Big Options Trade Bets on Future Volatility
Despite the current calm, some traders are preparing for significant price swings. A large options trade placed on Deribit anticipates a possible surge in Bitcoin volatility. This entity invested over $1 million to purchase a combination of call and put options at a $66,000 strike price, set to expire on November 29. The trade, known as a long straddle, suggests the trader expects Bitcoin’s price to either surge past $87,000 or drop below $53,000 by the expiration date. For this strategy to be profitable, the price must move far enough in either direction to cover the premium paid.
With both positive and negative market forces at play, the crypto market remains in a holding pattern, waiting for the next big catalyst.
Disclaimer:
This article is for informational purposes only and does not constitute financial, investment, or other professional advice. The information contained herein is accurate as of the date of publication but may change over time. Always consult a professional before making any investment decisions.
