Low Market Volatility Dampens Derivatives
– Bitcoin and Ethereum derivatives markets are experiencing decreased activity due to low market volatility.
– The combined futures and options trade volume for Bitcoin and Ethereum is at or approaching all-time lows.
– Open interest in Bitcoin futures markets has been flat at $12 billion over the last month.
– Implied volatility, which measures the likelihood of changes in prices, is also at historical lows.
– The fear and greed index remains neutral, indicating a lack of market movement.
BTC Price Outlook
– Crypto markets have remained flat with a total capitalization of just above $1.2 trillion for the past seven weeks.
– Bitcoin briefly dipped below $29K but quickly recovered to its sideways channel at $29,150.
– The market is experiencing extreme volatility compression, suggesting that Bitcoin is either no longer volatile or volatility is mispriced.
– The Bitcoin volatility index has reached an all-time low.
– Market participants expect the inactivity to continue for a little while longer.
Hot Take
The recent market stagnation has led to decreased activity in Bitcoin and Ethereum derivatives markets. Low market volatility and historical lows in trade volume and implied volatility indicate a lack of price movement. This suggests that Bitcoin is either no longer volatile or volatility is mispriced. The neutral fear and greed index further supports the lack of market movement. As the market remains flat, with Bitcoin hovering around $29K, investors will need to endure the boredom of a sideways market until there is a significant shift in market sentiment or activity.
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