Bitcoin traders expect sharp volatility, here’s how to profit from it

Multiple on-chain and technical analysis metrics suggest the crypto market is in for a sharp price move. Here is a strategy pro traders use to profit from volatility.

Analysts who closely monitor traditional markets have started calling for a volatility spike in cryptocurrencies due to dire macroeconomic conditions. Signs of stress coming from credit markets took investors by surprise after the British pound hit a record low against the U.S. dollar on Sept. 26 and liquidity concerns surrounding major global banks like Credit Suisse and Deutsche Bank are boosting traders’ bearish sentiments.

According to the Labor Department, unemployment in the United States reached 3.5% in September, the lowest in 43 years. Although that might sound positive at first mention, it indicates that the economy continued to overheat despite the U.S. Federal Reserve’s (FED’s) rate hikes and quantitative tightening. Meanwhile, eurozone retail sales dropped for the third consecutive month in August, a 2% contraction versus the previous year.

All of these developments back the analysts’ call for a spike in volatility. Volatility is a statistical measure commonly used by investors and traders calling for