Bitcoin Could Move $5K After White House Crypto Summit; ETH and SOL Volatility Likely: STS Digital

Key Points

  • U.S. President Donald Trump will host a crypto summit this Friday, potentially announcing a strategic bitcoin reserve.
  • The summit could lead to increased market volatility, with options markets showing significant implied volatility differences between Friday and Saturday expiries.
  • Traders are preparing for potential price swings in major cryptocurrencies like BTC, ETH, and SOL following the summit.

Summary

The upcoming White House crypto summit, set for this Friday, has traders on edge, expecting significant market movements. President Donald Trump, who has previously hinted at creating a strategic crypto reserve, will meet with key industry players like Coinbase, Chainlink, and Exodus. The latest rumors suggest a shift from a diverse crypto basket to focusing solely on Bitcoin for the reserve. Analysis from STS Digital indicates that options markets are pricing in high volatility, with a notable gap in implied volatility between options expiring on Friday and Saturday, suggesting expectations of increased price turbulence post-summit. Bitcoin options, for instance, show an expected price movement of about 5.5% or nearly $5,000 in either direction. Despite the anticipation, Jeff Anderson from STS Digital cautions that such high expectations often lead to market disappointment, although options remain a safer bet for directional plays in this volatile environment.

coindesk
March 6, 2025
Crypto
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