Bitcoin Faces $5K Swing as White House Crypto Summit Sparks Market Jitters: STS Digital
Traders Brace for Major Volatility in BTC, ETH, and SOL Options
Bitcoin (BTC) could see a $5,000 price fluctuation following Friday’s White House Crypto Summit, according to an analysis by STS Digital. Options data from Deribit indicates that traders are preparing for heightened turbulence, with implied volatility (IV) spiking ahead of the event.
President Donald Trump is set to meet with top crypto executives, including leaders from Coinbase, Chainlink, and Exodus, fueling speculation that a U.S. strategic Bitcoin reserve could be announced. Earlier reports suggested that the administration might instead support a broader digital asset basket, including XRP, ADA, SOL, BTC, and ETH.
Options Market Signals Wild Weekend Ahead
STS Digital’s Jeff Anderson highlighted key shifts in market sentiment:
- BTC options expiring Friday: 56% implied volatility
- BTC options expiring Saturday: 80% implied volatility
- ETH and SOL also pricing in sharp moves
These numbers indicate BTC could swing $5K in either direction, while ETH and SOL are eyeing $135 and $13 moves, respectively.
Will the Hype Match Reality?
Despite the aggressive pricing, Anderson cautioned that expectations often exceed reality in crypto markets:
“Large implied volatility doesn’t always translate to actual big moves. The market is bracing for a reaction, but we’ve seen event-driven volatility disappoint before.”
Post-Summit Outlook
Should the summit deliver major policy changes or regulatory clarity, traders may see sustained volatility. However, if expectations outpace actual developments, options premiums could deflate quickly, leading to a cooler market into next week.
