The Halving

The long-anticipated halving of the BTC mining award is upon us.  The reference article from Investopedia Bitcoin Halving explains what that is and what it means for miners and market participants in general.  As with any anticipated market event, people fall into three camps: those that think it is a bullish event, those that view it as bearish, and those that are unsure.  I have heard many takes in the preceding weeks and months, everything from “look at the ’17 bull run post halving” to “buy the rumor, sell the news.”  What is unique during this halving is the place BTC holds in the pantheon of financial assets.  In ’16, BTC was a side note that only the most curious minds in the financial universe were aware of, let alone understood.  Moreover, there were not as many venues for expressing a view other than buy and hold.  Today, BTC is more accessible and holds a more prominent place in public discourse as it is not uncommon to see BTC mentioned in traditional financial publications like the Wall Street Journal and Financial Times.  The average person now is at least familiar with Bitcoin even if its uses and operation are still a mystery.

 

I have seen and traded through numerous events over my past 20+ years in the market.  Whether it was the re-opening of exchanges post 9/11, the first Friday jobs numbers, geopolitical events like elections, or votes on things like Brexit, one thing has held certain, risk management is paramount around known events.  The best way to manage risk or express a view is through the derivatives markets.  That holds true today with this BTC-centric event as participants are lining up on both sides of the market, hoping for financial gain as well as the all important “told you so” on BTC’s price action.

 

If you have a view you would like to trade against or are just looking for insight into how the derivative markets are lining, please do not hesitate to reach out to us here at DBL Digital.  We are always looking to share our insight and help clients or potential clients gain a better understanding of the growing option markets.

 

Have questions about this post? Contact DBL Digital

 

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About the Author:

Jason Urban is CEO of DrawBridge Lending / DBL Digital. A seasoned financial industry veteran with an MBA from University of Chicago Booth School of Business and a BS/BA Finance and Marketing from Georgetown University, Jason specializes in market making, arbitrage, and capitalizing on market inefficiencies. He holds Series 3, Series 7, and Series 24 registrations and is quoted in several publications as an expert in cryptocurrency investing and lending.