Derivatives Traders Prepare for Unprecedented Bitcoin Volatility
Analysts at Bitfinex are predicting “unprecedented” volatility in the bitcoin market, with options market signals indicating higher expectations compared to previous years. This anticipation comes as the industry awaits news from the Securities and Exchange Commission regarding proposed spot bitcoin ETFs.
Bitcoin Implied Volatility Reaches Multi-Month High
According to The Block’s Data Dashboard, at-the-money implied volatility for bitcoin reached a multi-month high of 70.1% on Tuesday. This spike in short-term options implied volatility suggests that traders are preparing for increased volatility as they await the SEC’s decision on bitcoin ETFs.
Current Bitcoin Price and Market Capitalization
As of 1:55 p.m. ET, the largest digital asset by market capitalization was trading at $44,114, representing a 4% increase in the past 24 hours.
About the Author
Brian McGleenon is a UK-based markets reporter for The Block. He has extensive experience as a financial journalist and producer for various news outlets. In addition to his interest in web3 and cryptocurrency developments, Brian is also passionate about geopolitics, environmental issues, artificial intelligence, and longevity research.
Hot Take: Anticipating Unprecedented Bitcoin Volatility
Derivatives traders are bracing themselves for unprecedented price moves in the bitcoin market. The surge in options trading volumes and the pending approval of spot bitcoin ETFs by U.S. financial regulators have contributed to this anticipation. The current spike in implied volatility indicates that traders are preparing for more turbulence ahead. As the industry eagerly awaits news from the SEC, it remains to be seen how these developments will impact the bitcoin market and its participants. Stay tuned for further updates on this evolving situation.
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