Bitcoin Expected to Move $5K Following White House Crypto Summit
Digital assets trading firm STS Digital warns that Friday's White House crypto summit may increase market activity. Key industry leaders, including Coinbase and Chainlink, will attend the event hosted by U.S. President Donald Trump.
Key points from the news:
- Trump may announce a strategic BTC reserve, moving away from a previous proposal involving a basket of altcoins like XRP, ADA, and SOL.
- Options pricing indicates traders expect significant volatility over the weekend.
- Implied volatility for BTC options expiring Friday is 56%, increasing to 80% for those expiring Saturday.
- The expected price movement for BTC could be nearly $5,000, with ETH and SOL anticipating moves of $135 and $13, respectively.
- Expectations for large volatility often result in lower actual movements, suggesting caution in directional bets around this event.
The analysis suggests that option prices may decrease after the summit as market fears settle.