Bitcoin surges strongly, how to use cumulative options products to help layout the market | Weekly Market Insights Review

On the evening of November 13 at 8 PM, during a live broadcast on the official Matrixport YouTube channel, Matrixport's Asset Management Director Daniel provided an in-depth analysis of market trends from last week (November 6 - November 12). Daniel detailed the reasons behind the significant rise in BTC prices driven by the market, discussed the impact of Trump's election victory and policy expectations on the crypto market, the latest changes in the options market, and the dominant position of institutional funds within it. Additionally, he offered investors robust investment directions and strategies in the current high-volatility market environment.

The live broadcast content is as follows

From November 6 to November 12, BTC prices experienced a strong surge, breaking through $90,000 and nearing the critical psychological level of $100,000 as of November 14. This wave of growth was primarily driven by the approaching critical point of global crypto adoption and the favorable policies following Trump's election victory. A large influx of institutional and retail funds, combined with a strong dollar and heightened inflation uncertainty, led investors to view BTC as "digital gold" to hedge against the volatility of traditional assets, significantly boosting other crypto assets as well.

Analysis of Market Volatility Reasons

• High Market Sentiment and News-Driven Dynamics

Recently, the market experienced a notable surge, particularly over the past weekend with a rapid "panic buying" phase. Bitcoin prices briefly surpassed $90,000 on some exchanges, indicating strong investor interest in the crypto market. This surge was driven by news, primarily including policy expectations following the election, especially the optimistic sentiment brought about by Trump's victory. He proposed including BTC in the "national strategic asset" plan, further boosting market confidence and attracting substantial institutional and retail funds.

• Favorable Policies: Bitcoin's National Strategic Positioning

The BTC "national strategic asset" positioning proposed after Trump's victory has elevated BTC's status in the U.S. financial strategy, with expectations that BTC will gradually enjoy a strategic reserve status similar to gold. Trump's supportive stance on the development of the crypto market has invigorated market sentiment, leading to expectations of a more lenient regulatory environment in the future, further supporting BTC's price increase.

• The Ripple Effect on Altcoins

Trump's attention to other crypto assets like Dogecoin (DOGE) and his appointment of Musk as head of the efficiency department have also raised market expectations for altcoins. The market believes that under a backdrop of loose policies, altcoins may receive more attention, potentially increasing the market capitalization of tokens like DOGE. Although the altcoin market is performing actively, the current strengthening of institutional influence suggests that investors should maintain a high allocation in mainstream assets (like BTC) to cope with potential market volatility.

Current Context of the Options Market and Institutional Behavior

• Joint Push from Institutions and Retail Investors

The dual participation of institutional investors and retail investors has become the main driver of price increases. The net inflow of ETFs, USDT, and USDC has significantly increased, indicating a coordinated influx of funds both inside and outside the market. Wall Street and various funds are also actively positioning themselves in crypto assets, enhancing market stability and upward momentum, creating a collective upward force in the market.

• Adoption Rate Critical Point and Institutional Holdings

The global crypto adoption rate has currently reached 7.51%, nearing the 8% critical point for mainstream market conversion. It is expected that as the adoption rate increases, the demand for Bitcoin will further grow. Many institutions, including pension funds in the U.S. and the U.K., have incorporated BTC into their asset allocations. This dynamic of adoption rates will drive BTC demand from individual investors to larger enterprises and institutions, further solidifying BTC's position as a long-term investment and safe-haven asset.

Investment Directions to Watch

• Opportunities in Institutional Adoption Rates

As institutions increase their allocation to crypto assets, investors should closely monitor this dynamic of adoption rates. The substantial entry of institutions not only provides long-term stability to the market but also enhances the security of BTC as an asset. Investors can gradually increase their allocation to crypto assets to prepare for potential growth in adoption rates and enjoy the market expansion benefits brought by institutional funds.

• Accumulated Options Products - Flexible Discount Accumulation Tools

Matrixport's accumulated options products are suitable for gradually accumulating mainstream assets like BTC during market volatility. This product allows investors to build positions in batches at discounted prices, smoothing out acquisition costs while reducing the risk of one-time investments. Over a certain period, investors can regularly purchase the underlying assets at fixed discounted prices, meeting the demand for discounted accumulation.

The current market is in an upward phase, and investors can adopt a batch accumulation strategy, using accumulated options products to flexibly increase their positions in a volatile market, optimizing buying costs and reducing the risks of single acquisitions.

With the acceleration of adoption rates and the expected support from policies, investors can use accumulated options products in combination with other structured products.

Summary

This week, the market has shown an overall positive upward trend against the backdrop of favorable policies, institutional participation, and accelerating adoption rates. Trump's policy statements have increased BTC's market attractiveness, while expectations of loose policies have also driven the rise of other crypto assets like Dogecoin. Matrixport's accumulated options products provide stable growth investment options, allowing investors to strategically position themselves in a high-volatility market.

For more exciting content, you can check out the YouTube replay: https://youtube.com/live/Elh_Ay9wd3c?feature=share