4 months ago
Bitcoin (BTC), the largest cryptocurrency by marketplace capitalization, deed a record-high supra $109,000 connected Monday, sending some implied volatility and realized volatility to the highest levels since August's yen transportation commercialized unwind.
Realized volatility is the humanities terms fluctuations of bitcoin implicit the past 30 days. It deed 67 connected the Bitcoin Volatility Index (BVOL) connected Deribit. The Bitcoin Volmex Implied Volatility scale (BVIV) deed a precocious of 71. Implied volatility is the market's anticipation for aboriginal terms fluctuations derived from options pricing. Both indexes are up astir 2% connected the day.
"The affirmative correlation betwixt bitcoin's terms and implied volatility remains intact. It’s a motion traders are chasing options, peculiarly calls, arsenic hazard reversals amusement calls are trading astatine a premium comparative to puts that connection downside protection," said Omkar Godbole, a markets expert and managing exertion of markets astatine CoinDesk
In addition, short-duration calls are priced higher than longer-duration ones, a uncommon occurrence that indicates beardown short-term bullish sentiment, according to Andre Dragosch, the European caput of probe astatine Bitwise. Open involvement successful options has accrued by 44,000 BTC, reflecting heightened speculative activity, Dragosch noted.
Traders are expecting a accelerated terms summation pursuing President-elect Donald Trump's imaginable announcement of a strategical bitcoin reserve.
Trump's "influential usage of societal media, which has historically moved markets, is adding to the uncertainty surrounding the adjacent fewer days," suggests Mitch Galer, a trader astatine GCR. "Speculation astir a strategical crypto reserve and imaginable deregulation, crypto markets are optimistic astir further gains this year".
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