Peer-to-Peer Bitcoin Exchange LocalBitcoins Launches Mobile App

The peer-to-peer Bitcoin trading platform, LocalBitcoins, announced today the launch of its mobile app.

The app is now available to download on Android, with an iOS version still under development, according to a press release. The company did not provide a specific launch date for the iOS app.

Founded in 2021, LocalBitcoins has played a leading role in providing a platform for Bitcoin trading in emerging markets. It currently dominates the peer-to-peer trading space in Latin America and Russia, for example, with a wide lead over up-and-coming competitors such as Paxful and Binance P2P. For example, In Russia, traders swapped less than 5 BTC last week on Paxful, but LocalBitcoin users traded over 40 BTC in the same period of time.

Before today, LocalBitcoins traders had to access the platform from a web browser and a not-so-user-friendly interface. Third-party apps that attempted to use the LocalBitcoins market also failed for security reasons.

In contrast, Paxful and Binance P2P offer apps on Android and iOS with user-friendly interfaces and features that make the overall user experience more robust, such as a cryptocurrency wallet for Paxful or the spot, peer-to-peer, and futures trading functions on the Binance app.

“We are continuously listening to the needs of our customers worldwide, [and] many of our customers had been hoping for a mobile app as an option. And as a result, we developed one,” said Jukka Blomberg, LocalBitcoins’ chief marketing officer.

The app appears to have the same functionality that the platform offers on its desktop version. It will support 190 countries, more than 100 payment methods, a Bitcoin wallet, biometric security, fee-free user-to-user transactions, and multi-language user support.

The peer-to-peer Bitcoin market continues to thrive, especially in areas where spot trading is restricted or prohibited. According to data from peer-to-peer market analysis website Anacoinda, 32,373 peer-to-peer trades were made on LocalBitcoins in the last 24 hours for a total of about $10.5 million.


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What Pushed Solana Prices To A Fresh, All-Time High Today?

Solana’s sol token has been on fire lately, reaching a string of fresh, all-time highs in recent months as the platform generates widespread visibility.

The digital currency climbed to $219.11 earlier today, according to Messari data.

By this point, the cryptocurrency had risen more than 13,500% in 2021, additional Messari figures reveal.

The digital asset pulled back shortly after, trading closer to $212 at the time of this writing.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

It is notable that the sol token reached its latest record the same day that the total value locked (TVL) into DeFi projects built on the Solana platform hit an all-time high, according to data source DefiLlama. At the time of this writing, the TVL figure had reached $13.67 billion.

Further, the digital currency increased in value at the same time that it, and other layer 1 tokens, were moving higher along with bitcoin, a development reported on by CoinDesk and Cointelegraph.

However, when asked to explain sol’s latest price movements, analysts who contributed to this article highlighted a range of bullish factors.

“Solana continues to move up for several reasons,” said Tim Enneking, managing director of Digital Capital Management.


“It’s a legitimate participant in the NFT market (as opposed to a ‘hype participant’ as every token tries to claim some sort of affiliation with NFT to goose its price),” he stated.

Further, Solana is capable of providing what Ethereum “has been promising literally for years (PoS, low transaction fees, greater scalability, etc.).”

Past that, the association it has with cryptocurrency exchange FTX is providing a tailwind.

Finally, “the percentage growth of Solana (by virtually any metric: TVL, Twitter mentions, community size, etc.) is orders of magnitude above that of ETH.”

In addition, Enneking pointed to exchange data.

“Perhaps the strongest metric today is that $10M in long leverage positions opened on Bitfinex in the last 20 hours, while $4.5M of shorts closed,” he stated.

“A net $15M improvement in margin positions on a single exchange is massive – and telling.”

“All of this simply leads one to the conclusion that the potential upside for SOL is greater than the potential upside for ETH – even if ETH looks to hit a new ATH shortly,” said Enneking.

Konstantin Anissimov, executive director at CEX.IO, also weighed in, speaking to the Solana’s merits.

The platform has a unique value proposition, “which creates solid competition for Ethereum and other L1 blockchains on which projects can build DeFi solutions,” he stated.

“Solana offers very fast execution with fees of less than $0.01. This coupled with a very active development community and generous developer grants to further incentivise innovation lays out a path of success.”

However, he spoke to the competition posed by the Ethereum platform.

“Solana is not the only L1 blockchain project with such a promising future.”

“And we should also not forget about the dominance of Ethereum in the space, no matter what the fees and execution speed are.”

Anissimov also commented on the observation that the sol token followed bitcoin higher, emphasizing that “top cryptocurrencies” usually display this kind of correlation with the world’s most prominent digital currency.

Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, elaborated on this development, offering further detail.

“At the moment traders are seeking relatively safer altcoins since BTC’s future moves remain uncertain,” he stated.

“Without there being a full-fledged ‘altseason’ it is natural for traders to go for assets that have performed well over the last few months and have shown that they can move independent of Bitcoin to some extent,” said DiPasquale.

“Solana ranks top among these while others include DOT, LUNA and ATOM etc.”

“We can expect these blue chips of sorts to perform well until the market feels confident enough to pour capital into riskier altcoins.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.


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New Ethereum-to-Cardano Bridge Will Provide NFT Creators Eco-friendly Options

Bondly has announced a new functionality on the Cardano blockchain that is aimed at creators. Energy consumption has been a major problem on the Ethereum network, especially given the increased usage of the blockchain over the past couple of months. Developers behind the project have been working towards moving the network to proof of stake but that is still another year away.

In the meantime, Ethereum blockchain still uses a proof of work mechanism which requires a large amount of energy for transactions to be confirmed on the network. Thus, Bondly has introduced a new solution for NFT creators who may be looking for more sustainable and eco-friendly options for their creations. But at the same time, do not want to lose the NFTs they have already minted on the Ethereum blockchain.

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Bridging Two Worlds

In its announcement, Bondly says its official Ethereum to Cardano bridge will enable creators to choose a more eco-friendly blockchain for their NFTs. Creators are able to move their NFT creations from the Ethereum blockchain to the Cardano blockchain using this bridge.

In terms of energy-efficiently, the Cardano blockchain is four million times more efficient than Bitcoin. Ethereum is said to use the energy equivalent of Columbia, while Cardano’s energy usage comes out to be equivalent to that of a family home. Thereby providing a greener and eco-friendly network for creators who are worried about the environmental impact of blockchain use.

Related Reading | Cardano Loses 3rd Spot On Crypto Top 10, Why It May Drop Even More

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Bondly announced that through this partnership with IOG, it will be able to provide NFT creators a way to simply transfer NFTs minted on the Ethereum blockchain over to Cardano without the risk of losing a transaction or paying high fees for transfers.

Cheaper On Cardano

In addition to having their work on an eco-friendly blockchain, creators do not have to worry about the high fees that the Ethereum network has come to be known for. With the majority of NFT minting happening on Ethereum, the network fees have shot through the roof, leaving smaller creators who cannot afford these high fees out to dry. This is, however, not the case with Cardano.

Cardano price chart on

Cardano price chart on

ADA price struggles at $2.13 | Source: ADAUSD on

The network boasts of low fees for any transaction carried out on the blockchain. Additionally, the network also offers NFT creators price predictability and stable transaction costs, which will eliminate increasingly high fees and the fear of lost transactions due to not having enough gas fees to cover a transaction.

The bridge is set to launch in 2022 and in celebration of its launch, Bondly will release a special series of eco-friendly NFT on the network. Harry Liu, CEO of Bondly, said; “The creation of a cross-chain NFT bridge between Ethereum and Cardano marks a pivotal moment in the transition from legacy blockchain technology to one of the most hotly anticipated ‘third generation’ networks. As one of the pioneers of the NFT movement, we continue to play a key role in building the infrastructure that will herald the next phase of NFT evolution.”

Related Reading | Cardano Set To Enter The Babbage Era After Alonzo HFC Milestone

Liu is not the only one excited about the bridge. Founder of Cardano, Charles Hoskinson, expressed support for the project. “We built Cardano with energy efficiency in mind, which is why this partnership with Bondly is so crucial,” said Hoskinson. “We believe that blockchain will only achieve mass adoption when end users have a seamless experience, regardless of which blockchain they are using, which is what bridges like this will achieve.”

The founder has always believed that interoperability will be the future of the blockchain industry and this stance is reiterated with the new partnership with Bondly.

Featured image from Bitcoinist, chart from


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As The World Population Increases, Bitcoin Offers Freedom

As the world population increases (the global population passed the 7 billion mark in 2011), the percentage of people who live under a democratic regime decreases. It is estimated that if things continue as they are now, in the years’ time, those who live under democratic principles and the rule of law, will comprise merely 26% of the global population, as for now India remains democratic. A report from tells us that 2021 is the 15th year in a row that global freedom deteriorated and that authoritarian regimes, like the Chinese Communist Party, are rising. In the same report, it is mentioned that 75% of the global population lives in a country where democratic principles are deteriorating.

These significant numbers are very much a result of major countries that have abandoned democracy openly like China, or secretly like Turkey, or that are thinking about it, like India and Brazil, who’s next move is anticipated. However, authoritarianism has seeped into Europe as well with countries such as Belarus and Hungary.

But what is democracy? Well, the simple definition is that democracy is the rule of the people. The word comes from Ancient Greek and it is a derivative of two words: demos, meaning the populace, the common people, and Kratos, which means power, or strength. In ancient Greece, on the hill of Pnyx in Athens, Athenians would gather to discuss the issues of the city, which was a revolutionary approach back then. There, on that hill, anyone of those thousands could take the stand and share their opinion on the current issues. Decisions were made based on the merit of each option, not merely the social standing of the idea’s presenter.

Thousands of years later, societies grew larger, and the concept of representative democracy evolved We began electing certain people to the job of carrying our opinions to the legislature, and making decisions on our behalf. Eventually, societies and populations continued to grow and people had to come up again with a way to share the same reality, to find a new way to agree. This is where television and the mass media made their appearance. People were able to learn about the reality of the rest of the world. We now relied on the news reports to tell us about the world outside of us. However, the news had to be simplified, had to be packaged in neat, disentangled, 60-minute discussion topics, so that everyone would understand, regardless of education, age, IQ, or socioeconomic status. Now, the ones making the decisions are the few, the experts who are standing between the people and reality.

Later, with the advent of the internet, some would claim that this invention would bring democracy back to the hands of the people.

With the internet also came another type of freedom — financial freedom. On January 3, 2009, the Bitcoin network came into existence. Those who hold bitcoin see it as many things. It is potential, it is hope, it is independence. But is it democratic? Do the values and principles of democracy apply to the functions of cryptocurrency, and specifically of Bitcoin’s?

Andreas Antonopoulos once said during a Q&A session:

“Bitcoin is a system that decentralizes power radically. Politically many people call that cypherpunk, crypto-anarchy, other words we don’t yet have. Bitcoin is redefining political and organizational systems, not just bitcoin, open public blockchains. This technology born out of the internet and expressing some of the radically egalitarian open philosophies, a free flow of information, freedom of speech, freedom of association on a transnational basis that transcends not just borders but every aspect of identity, without identity. That’s a radical new political system, it started with the internet, it’s now happening to money, and we don’t yet have good words for it. Erm, some people might call it democracy, I don’t think that’s what it is.”

Bitcoin offers a way out to many living in democratic and undemocratic, financially oppressive regimes. El Salvador has recently rolled out bitcoin as an official legal tender. President Nayib Bukele claims that this will help the country, since many El Salvadorans work abroad and send money back home with huge transaction costs, and almost 70% of the population do not have a bank account. However, his critics say that bitcoin’s adoption may be a distraction from the steps he has taken towards dismantling democracy. In this case, Bitcoin offers freedom, and also is potentially used as a means against it. One can’t help but wonder whether the adoption of bitcoin as an official currency negates the purpose of its existence in a way.

Bitcoin, in the end, can mean a lot of different things for different people. For some, i.e., those who have been “cashing in” bitcoin has simply been a great way for them to make money. For others bitcoin represents hope for the future: a future where even if someone lives in one of the most authoritarian regimes, they hold a piece of freedom in their digital wallets. Something that cannot be controlled by the few. If the history of humankind has taught us anything, it is that all things can be used for good or evil. It always depends upon in whose hands they end up.

This is a guest post by Eva Vasileiadou and David Showunmi. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.


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Treasury to Give SEC Considerable Authority Over Stablecoins Like Tether: Report

Earlier this year, as questions swirled around the growing prominence of Tether and other stablecoins within the crypto industry, U.S. Treasury Secretary Janet Yellen called a snap meeting of financial regulators. The goal was to develop a game plan for regulating the $130 billion asset class. 

It appears as though it has one. 

The Treasury Department will let the U.S. Securities and Exchange Commission take the lead in regulating stablecoins such as Tether and USDC, according to a Bloomberg report today based on anonymous sources. The Commodity Futures Trading Commission, the SEC’s sister agency, will also play a role. These powers are reportedly set to be outlined in a Treasury report to be released as early as this week.

Per Bloomberg, SEC Chair Gary Gensler has lobbied Yellen and fellow members of the President’s Working Group on Financial Markets to give the county’s top securities regulator the power to set policies for stablecoins and enforce them.

In its draft phases, the report called for Congress to create a separate bank charter for stablecoin issuers, whose digital currencies are purportedly backed by real-world assets. But given political divisions, says Bloomberg, “Gensler pushed to clarify the SEC has existing powers to oversee tokens when they’re involved in investment transactions.”

Gensler and Federal Reserve Chairman Jerome Powell have both publicly stated that centralized stablecoins are similar to money market funds and should be regulated as such. That would put them under the SEC’s purview. 

Tether, the world’s largest stablecoin and the fourth-largest crypto asset, has a market capitalization of over $70 billion. After years of stating that each Tether was backed by one U.S. dollar in a bank, the company was forced to revise its statements in the wake of a New York Attorney General investigation. A recent “transparency report” showed that much of Tether’s holdings are in commercial paper, a form of debt that allows the company to earn yield but which may become riskier during financial crises. 

Its largest competitor is USD Coin, issued by crypto payments firm Circle in partnership with San Francisco-based cryptocurrency exchange Coinbase. It’s now worth over $32 billion. A June report indicated that only 60% of its holdings were in cash, with the rest coming from certificates of deposit, Treasury notes, commercial paper, and corporate bonds.

Gensler has been signalling that he’s ready to expand regulations for stablecoins and the decentralized finance markets they enable since his appointment in April of this year. He has said that the rapidly expanding asset class “may help facilitate those seeking to sidestep a host of public policy goals” and even impinge national security.


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The Wolf of Wall Street Joined the NFT Craze, Vowed Never to Leave it

The cryptocurrency space has seen numerous prominent individuals who went from criticizing it to joining it years later. Jordan Belfort, who used to bash bitcoin but later predicted it will tap $100,000, is now a keen supporter of the non-fungible token industry.

  • NFTs have garnered the attention of numerous celebrities outside of the cryptocurrency space in the past year.
  • Individuals like Tom Brady, Steph Curry, Eminem, and Paris Hilton, to giant organizations like Marvel Studios, DC, New York Knicks, and more, have all hopped on the bandwagon in some form.
  • The latest to dip his toes is the so-called Wolf of Wall Street, Jordan Belfort. He expressed his astonishment at the space in a recent tweet and vowed never to leave it.

  • This is somewhat intriguing coming from Belfort due to his past. He used every opportunity to lash out at the primary cryptocurrency and the rest of the industry years ago.
  • Back in 2018, when most tokens were in a bear market, and bitcoin had lost more than half of its USD value in months, he tapped to his past and said the BTC landscape reminds him of the days where he and his company used to scam people.
  • Moreover, he urged investors who wanted to get in because “they believed in it” to run away.
  • Earlier this year, though, Belfort changed his tune. He went from predicting that bitcoin will go away to envisioning a price tag of $100,000.
  • He reasoned that the COVID-19 pandemic and the subsequent actions undertaken by world governments completely changed his mind on the asset.
  • Following his latest Tweet, after which he also changed his profile pic to include an NFT, it seems that he is now a believer in non-fungible assets as well.

Featured Image Courtesy of FullFiguredNews


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$40,000,000,000 Public Pension Fund To Invest In Bitcoin-Related Products: Report

Update: According to a report from The Korea Herald, the Korean Teachers’ Credit Fund says it has no plans to invest in any Bitcoin exchange-traded funds.

One of South Korea’s largest pension funds, the Korea Teachers’ Credit Fund (KTCU), is reportedly planning to invest in various Bitcoin (BTC) exchange-traded funds (ETFs).

The public pension fund was set up to provide retirement benefits for the country’s education personnel.



According to a report from the Korea Economic Daily, the KTCU says that while it wants to invest in Bitcoin spot ETFs, the size of the investment is still yet to be determined.

The decision marks the first instance of a South Korean domestic pension fund allocating capital into cryptocurrency-related products. As of December 2020, the fund managed more than $40.2 billion in assets.

The report notes that the firm’s decision to invest in Bitcoin was based on the judgment that cryptocurrency is gradually becoming a mainstream investment.

In particular, the KTCU says that as Bitcoin-related ETFs began appearing one after another, the perception of BTC shifted towards being a more transparent and supervisable investment.

The report also points to other cases, such as the Houston Firefighters’ Relief and Retirement Fund (HFRRF) recently purchasing both Bitcoin (BTC) and Ethereum (ETH), as more validation of the growing cryptocurrency landscape.

Earlier this month, Australia’s fifth-largest pension fund announced that it would consider allocating some of the firm’s $69 billion into the crypto markets.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Altcoin Surge Could Be Just Around the Corner Despite Bitcoin Strength: Crypto Analyst Nicholas Merten

Crypto analyst Nicholas Merten says that altcoins could be in for a leg upward as Bitcoin continues to trade above $60,000.

In a new analysis video, Merten says that many traders were expecting BTC to steal the show the moment it broke all-time highs following the launch of the ProShares exchange-traded fund (ETF).



Instead, the analyst says the altcoin market has made a surprise surge, which he believes could be a significant sign of strength.

“I still think that we’re going to see altcoins in the same exact position. Many of them like Etheruem already pressing up to those previous all-time highs following suit with Bitocin and already starting to outpace Bitcoin during its big week. This might be a little bit of a buy the rumor sell the news event where a lot of the liquidity shift doesn’t just go to Bitcoin, but especially goes to altcoins.”

Taking a look at altcoin dominance, which compares the market share of altcoins to that of Bitcoin, Merten says that the metric bounced of a crucial support line near 52%.

“At the peak moment of fear where everyone’s looking to rotate, when people are thinking ‘Oh my god we’re going to break the support line,’ or ‘It’s just too late for altcoins’, lo and behold, we bounce up not only exactly around this general support range around 52.5%, but all the way up to 54.15%.”

The analyst posits that the decentralized finance (DeFi) sector of the crypto markets could deliver promising gains in the next few months.

“So the idea here is that we could start to come up and set new highs in dominance for DeFi. DeFi is one of the most fundamental sectors in the crypto space. It’s got real adoption, real traction, real excitement behind it…

I think that there’s a very good chance here that in the coming months, as we go into Q1, we could start to see DeFi dominance start to grow and it might even happen quicker in this case.”

[embedded content]


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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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BTC Holders Reduce Spending, Why Bitcoin Could Get More Rocket Fuel

Bitcoin trends to the upside in the daily chart after experiencing some downside action during the weekend. As of press time, the benchmark crypto trades at $63,136 with a 3.8% profit in the 24-hour chart.


The rally has been driven by an increase in institutional demand as the first Bitcoin-linked Exchange Traded Funds (ETFs) in the U.S. have been rollout. Both products experienced a record in trading volume with ProShares’ product surpassing the launch of the Gold ETF by reaching $1 billion in less than 3 days.

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This propelled the Chicago Mercantile Exchange (CME) Open Interest to the stratosphere setting a new all-time high of $5.44 billion for futures contracts, a report by Glassnode indicated. The CME OI has risen by over 265% in October 2021 alone, as seen in the chart below.

Related Reading | TA: Bitcoin Price Faces Hurdle, Why 100 SMA Is The Key


The derivates market has been heating up across the board with the funding rates going positive as Bitcoin moves higher. This has triggered a FOMO effect which led to a correction as over-leverage traders were shaken out in the past days.

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Bitcoin seems to be making quick recoveries and holding on to $60,000 as critical support, but as Glassnode noted an over-heated futures sector put the entire market at risk of further downside price action.

(…) funding rates remain at similar levels as observed just prior to the early September flush out. With futures open interest remaining near all-time highs, a risk of further downside to clear even more leverage does remain in play.

Bitcoin Investors Expect More Gains

In support of the current optimistic general sentiment in the crypto market, Glassnode noted a reduction in activity by long-term holders. These investors were taking profits for the past 2 weeks following a period of accumulation.

Related Reading | Is China Considering Lifting The Bitcoin Mining Ban? The NDRC Runs Public Survey

As the research firm explained, Bitcoin long-term holders (LTH) exhibited a typical behavior as BTC’s price entered price discovery. As the chart below shows, there seems to be an inverse correlation between the total BTC supply held by LTHs and the price of this cryptocurrency.


Whenever there is a reduction in LTHs spending, the price of Bitcoin tends to the upside in a massive rally as seen in late January and early February 2021.

Related Reading | On-Chain Data Shows Surge In Stablecoins Supply Pouring Into Bitcoin

When combining the behavior of LTHs, already resuming their BTC accumulation, with that of Short-term holders (STH), Glassnode concluded that the overall sentiment is for Bitcoin to reach new highs:

(…) STHs have stopped spending during this correction. With LTH supply already starting to recover, the most likely interpretation is that the vast majority of coin holders are still expecting and waiting for higher prices.


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Binance CEO expects ‘very high volatility’ in crypto. Here’s how to trade it

Volatility is a complex statistical measure commonly used by traders and investors. Those unfamiliar with it will likely attribute some sort of special “standing” to analysts whenever the term is used. However, as shown in a recent comment by Binance exchange founder Changpeng Zhao, most of the time, people are clueless about what volatility means.

This is not the first time that Zhao has made an incorrect assumption on that topic. In May, Zhao said that volatility was “not unique to crypto,” although multiple sources, including Cointelegraph, showed that excluding Tesla, no S&P 500 stock matched Bitcoin’s (BTC) 70% yearly volatility.

So, what is volatility?

Realized (or historical) volatility measures how large daily price fluctuations are, and higher volatility indicates that the price can drastically change over time in either direction.

This indicator might sound counterintuitive, but lower volatility periods represent a more significant risk of explosive moves. That is partially due to realized volatility being a backward-looking indicator. During quieter periods, traders tend to over-leverage, which then causes larger liquidations during sudden price moves.

Bitcoin 50-day realized volatility. Source: TradingView

The above data displays a 74% average 50-day volatility over the past two years. Historically, the indicator tends to accelerate as it moves above 80%, but there is no guarantee that such a move will occur. Data from February and April 2017 present a counter-argument for this thesis.

Volatility does not differentiate bull and bear markets because it exclusively gauges absolute daily oscillations. Furthermore, by itself, a quiet volatility period is not an indicator of an upcoming dump.

What if Zhao knows something we don’t?

Considering how well-connected the world’s largest crypto exchange founder is, there’s always a possibility that Zhao might have some inside information, but if a person were so sure about an upcoming event, the odds are they would likely know whether the impact is positive or negative. Once again, expecting “high volatility” for the “next couple of months” does not indicate someone has confidence in any direction.

Let’s assume that he is correct, and crypto volatility is about to breach the 100% yearly level. There’s an options strategy that fits this scenario and allows investors to profit from a strong move in either direction.

The reverse (short) iron butterfly is a limited risk, limited profit options trading strategy. It’s important to remember that options have a set expiry date; therefore, the price increase must happen during the defined period.

Profit/Loss estimate. Source: Deribit Position Builder

The prices above were taken on Oct. 25, with Bitcoin trading near $63,000. All options listed are for the Dec. 31 expiry, but this strategy can also be used using a different time frame.

The suggested bullish strategy consists of selling 1.23 BTC contracts of the $52,000 put options while simultaneously selling 0.92 call options with an $80,000 strike. To finalize the trade, one should buy 1.15 contracts of $64,000 call options and another 1.0 contracts of the $64,000 put options.

While this call option gives the buyer the right to acquire an asset, the contract seller gets a (potential) negative exposure. To fully protect from market oscillations, one needs to deposit 0.174 BTC (roughly $11,000), representing the investors’ maximum loss.

The risk to reward is sketchy, so the trader needs conviction

For this investor to profit, one needs Bitcoin’s price to be below $54,400 on Dec. 31, 2021, (down 14%) or above $75,500 (up 19%). The theoretical risk-reward is not good because the maximum payout is 0.056 BTC and the potential loss is over three times that amount.

Nevertheless, if a trader is certain that volatility is right around the corner, a 20% move from $63,000 in 66 days seems feasible. Traders should note that the investor can revert the operation ahead of the options expiry, preferably right after a strong Bitcoin price move. All one needs to do is buy back the two options that have been sold and sell the other two that were previously bought.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.