FICC Focus Navigating Crypto Volatility: All Options Considered
May 6, 2025
Dan Tapiero, founder and CEO of 10T Holdings and 1RoundTable Partners, dives into the world of cryptocurrency volatility. He discusses Bitcoin's declining volatility as adoption rises and the role of the expanding options market. The conversation highlights strategies for managing risk amidst market fluctuations and the influence of media on investor behavior. Tapiero also projects the digital asset ecosystem could soar to a $50 trillion value in the next decade, emphasizing the transformative potential of blockchain technology.
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Bitcoin Volatility Declining
- Bitcoin's volatility has decreased from highs of around 100% to about 40% due to increased institutional adoption.
- Institutional players smooth out volatility by reducing emotional retail-driven extremes and improving liquidity.
U.S. Government Boosts Crypto
- U.S. government support is a historic shift for cryptocurrency legitimacy and adoption.
- Regulatory frameworks and official endorsements reduce volatility and encourage institutional involvement.
Managing Crypto Volatility
- Structure portfolios with diversified revenue-generating companies and downside protections like liquidation preferences.
- This approach tames crypto volatility, enabling investors to weather 70-90% bear markets without panic.