TechFlow news — On September 24, Matrixport released a new chart showing that although Bitcoin is inherently volatile, its 30-day rolling returns have largely remained within a ±20% range over the past 18 months. Matrixport expects volatility to decline further and had recommended, at the beginning of 2023, an options-selling strategy—selling out-of-the-money put and call options—to generate additional returns.
Even though this strategy may occasionally result in losses, it has performed well overall due to the general decline in volatility. With the introduction of Bitcoin ETF-related options, more institutional participants are expected to enter the market, further compressing volatility. Therefore, selling volatility remains a viable strategy for Bitcoin holders to earn extra yield.
