Bitcoin’s volatility merger (BTC) continues that cryptocurrency remains stagnated, with slow action at prices between $ 110,000 and $ 120,000.
The implicit volatility of 30 days of cryptocurrency, as represented by the BVIV index of Volmex, fell 36.5% late on Wednesday, reaching the levels observed for the last time in October 2023, when BTC was negotiated below $ 30,000, according to Data Source TradingView.
The new multi -year hollow in implicit volatility suggests that optional traders do not yet rush for hedges, despite American economic data raising concerns about stagflation. The request for options, which are contracts used to hide or take advantage of price oscillations, is a major engine of the implicit volatility of an asset.
The same can be said on actions, where the VIX index has reversed the peak of Friday from 17 to 21 years old. The VIX measures the implicit volatility of 30 days in the S&P 500.
BTC reflects volatility models on the stock market
The implicit volatility of the BTC was in a decreased one-month-old trend, moving in the opposite direction of the cryptocurrency price, which has increased from $ 70,000 to more than $ 110,000 since November.
The negative correlation marks a deep change in the dynamics of the Bitcoin market. Historically, the volatility of the BTC and its cash price have evolved in tandem, with volatility increasing in the bull and bear markets.
The change in this correlation of spot volatility is attributed, in part, to the growing popularity of structured products which involve the drafting (sale) of purchase options out of money, analysts said at Coindesk.
This new dynamic suggests that Bitcoin is increasingly reflecting Wall Street patterns, where implicit volatility often decreases during stable bull races.
Read: The rally of Bitcoin’s “low volatility” from $ 70,000 to $ 118,000: a story of transition from Wild West to Wall Street-Like Dynamics
