Best Bitcoin and Ethereum Strategy in 2022? Answers in This Report

Bitcoin and Ethereum are stuck in a range with no clear direction during today’s trading session. One sector is blooming in

At the time of writing, Bitcoin is trading at $19,360, an overall flat move. Ethereum has shown similar price action in this choppy environment, with most cryptocurrencies in the top 10 for losses or sideways movements.

2022 Will Crush Bitcoin and Global Markets

According to a report by trading desk QCP Capital, this year was the worst performance for investors with cross-asset portfolios. If an investor owns bitcoin, stocks, and gold as part of a strategy, their capital will be in the red.

As seen in the chart below, the only assets recording gains are those in the energy sector, with crude oil and natural gas leading the way. The former he recorded his best performance in 2022 with a plus 34%, followed by crude oil (WTI) with his 4%.

The cryptocurrency market is the biggest loser in the current macroeconomic climate. Bitcoin and Ethereum posted losses of 66% and 72% respectively. In traditional markets, only the Nasdaq 100 records a similar drawdown of his 40%. QCP Capital wrote:

Outside of energy, the breadth and correlation of underperformance is astonishing. All macro-financial benchmarks are virtually underground (…). With all categories of bonds returning negative real returns today, there was essentially nowhere to hide and beat inflation this year.

In this environment, Bitcoin investors and traditional investors suffered little loss by holding their capital in US dollars. and wreaked havoc on other assets and national currencies.

The only safe haven for BTC and ETH investors

Despite the bear market, the options sector is booming and its adoption levels are high. Institutional investors are aware that BTC and ETH have perpetual speculative markets pushing key options indices to new highs. QCP Capital added:

(…) Crypto options volumes and open interest (OI) have held up exceptionally well this year in a crypto winter that saw trading volumes in other crypto asset classes drop by 70-90%. His OI for ETH options actually hit an all-time high in Q3!BTC OI is holding up relatively well too.

In this volatile and uncertain market, smart money is betting on volatility spikes and collecting premiums in the options sector. The trading firm claims that even its “vanilla” strategy managed to make a profit under these conditions.

The status quo in global markets is poised to persist, allowing options traders to maintain an edge amid upcoming volatility from macroeconomic events.