BTC Breaks Historical High, Non-Margin and Low-Cost Finance Solution Assists Investors with Steady Position Accumulation | Weekly Market Insights Recap

During the official YouTube livestream at 8 PM on November 20th, Daniel Yu, Head of Asset Management at Matrixport, analysed the market performance from the past week (November 13th — November 19th). Daniel elaborated on the reasons behind BTC’s record-breaking price, including the continuous inflow of institutional funds, the launch of BTC ETF options, and the global crypto adoption nearing the threshold. He also discussed the current dynamics of the options market and its profound impact, offering investors robust position accumulation strategies in a highly volatile market environment.

Key Takeaways from the Livestream

On November 22ⁿᵈ, BTC price broke through $99,000 to set a new all-time high, mainly driven by the inflow of institutional funds and the launch of BTC ETF options. With the global crypto adoption nearing the 8% threshold and a strong dollar, BTC has become the preferred tool to hedge against traditional asset volatility, resulting in high market sentiment. The collar option for BTC financing has provided investors with higher liquidity and risk-hedging capabilities, attracting more traditional funds into the market.

Analysis of the Reasons for Market Fluctuations

Influence of the Inflow of Institutional Funds and Policy Benefits

The strong inflow of institutional funds is the main driving force behind this BTC surge. MicroStrategy has again increased its BTC holdings, further solidifying its market position as a “BTC bank”; BlackRock has attracted traditional funds through BTC ETFs, injecting liquidity into the market. Meanwhile, reduced global policy uncertainty has made BTC the “digital gold” in asset allocation.

BTC’s Scarcity and Accelerated Adoption

As a decentralized asset, BTC’s scarcity and consensus-based pricing logic make it uniquely attractive. After the global adoption rate reaches the 8% threshold, the demand for BTC is expected to rise significantly. The increased crypto assets’ allocation by both institutional and individual investors further consolidates BTC’s position as a long-term store of value.

Options Market and Institutional Behavior in the Current Environment

The Market Impact of BTC ETF Options

The launch of BTC ETF options marks further crypto market maturity. On the first day of launch, ETF options volume reached 73,000 contracts with a call/put ratio of 4:1, indicating strong investor confidence in the short-term market. Meanwhile, institutions hedging volatility risks through options have brought greater market stability.

Volatility Changes and Fund Flows

Although BTC’s price has risen significantly, short-term volatility is declining, indicating gradually rational market sentiment. Institutional funds are primarily flowing into BTC, while retail funds are flowing into ETH and other tokens. However, if the inflow of institutional funds slows down, the market may face adjustment pressure.

Investment Directions to Consider

BNPL and Automatic Renewal

Matrixport’s BNPL product helps investors accumulate positions in batches at a lower cost, mitigating the risk of one-time input, while automatic renewal smooths out position accumulation costs amid market volatility, suitable for long-term BTC holders.

The Collar Option for BTC financing Solution Assists Investors with Steady Position Accumulation

Matrixport’s collar option for BTC provides low-cost, highly flexible financing tools in the current high volatility market:

• Zero/low-interest financing: Investors can stake BTC to low-cost financing with a high Loan-to-Value ratio and attractive interest rates, avoiding potential profit loss from high-value sales.
• No liquidation and crash protection: Provides downside protection for holding BTC without margin calls or forced liquidation.
• Flexible revenue structure: The high and low strike prices can be flexibly set according to the client’s risk preference and market expectations

Conclusion

This week, BTC demonstrated a strong upward trend driven by institutional funds, policy benefits, and accelerated adoption. The further maturity of the options market and Matrixport’s collar option provide investors with diversified choices to steadily navigate the high volatility market. In the context of accelerated adoption, BTC and related assets are expected to continue leading the crypto market.

Check out the recording of our YouTube livestream for more details: ​​https://www.youtube.com/live/5JXYRsSI-jw

About Matrixport Weekly Market Insight

[Matrixport Weekly Market Insight] is an interactive knowledge-sharing column newly launched by Matrixport, and will be livestreamed each week on the Matrixport official YouTube Channel. We will invite industry-leading product managers, top analysts, and KOLs to discuss investment strategies under different market situations and share their investment experiences.

Subscribe to the Matrixport YouTube Channel to stay tuned on the latest market developments.

Disclaimer: The above content is for informational purposes and reference only. The content does not constitute investment advice. Digital asset transactions can be precarious and volatile. Investment decisions should be made after carefully considering individual circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.

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