Bitcoin (BTC), which has been fluctuating between $70,000 and $63,000 since February, experienced a sharp drop over the weekend due to the US-Iran conflict, but subsequently recovered.
While Bitcoin remains around the $66,000 level, Singapore-based cryptocurrency analysis platform QCP Capital has shared its latest analysis for Bitcoin.
According to QCP analysts, the cryptocurrency market remained within a narrow range amid escalating US-Iran tensions. Following the US attack on Iran, Bitcoin and Ethereum fell to $63,000 and $1,910 respectively before recovering.
Saturday’s US attack on Iran resulted in the liquidation of approximately $300 million in long positions, but this was subsequently brought under control.
According to the analysis, options reacted moderately. 1-day implied volatility rose to 93% but then retreated to below 60%.
In particular, even as the conflict between the US and Iran escalated, option buyers continued to purchase Bitcoin call options with strike prices of $74,000 and $75,000 for the March expiry.
This suggests that some investors are positioning themselves for a rebound in March after five consecutive months of decline.
QCP analysts emphasize that the market is currently able to tolerate the fact that the Donald Trump administration has indicated that the military operation against Iran will last “approximately four weeks.”
*This is not investment advice.
