Bitcoin Implied Volatility Plummets To Pre-Bull Market Levels: What This Means
Bitcoin has sharply declined in the past month which has dragged it down to the $40K price point. The digital asset’s downtrend had then promptly dragged their metrics like implied volatility down with it. This decline has been even sharper as bears have gotten a tighter grip on the market. For some, this could be bad news. However, for others, it could mean a period of opportunity. Bitcoin Implied Volatility Crumbles Bitcoin’s implied volatility is a metric that is used to illustrate investor expectations of future price volatility of the digital asset going forward. This metric is not....
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Bitcoin volatility levels have now bitten a new low since November 2020. Volatility in the market has seen a downward drop as the price of bitcoin has stagnated in the last few months. As bitcoin saw record highs at the start of the bull market, volatility had risen greatly. Speculations rocked the market and there […]
Option traders seem to be quite fearful in October. The Crypto Volatility Index, or CVX, is now live as a beta test and proof of concept. The index tracks the implied volatility of crypto options in a similar fashion to the VIX index used in stock markets.The VIX is usually referred to as the “stock market fear index” as it often spikes in anticipation of major downward moves.The CVX operates under a very similar mechanism. It tracks the implied volatility of a basket of crypto options, primarily for Bitcoin (BTC) and Ethereum (ETH).Options are a derivative product that give buyers the....
The decentralized finance (defi) platform cvx.finance has launched the beta version of its “Crypto Volatility Index”, otherwise known as the “CVX.” The CVX is an index similar to the “Market Fear Index” (VIX) commonly used in traditional finance, but cvx.finance measures the suggestive volatility from bitcoin and ethereum options markets. It’s still early but a new product has been launched that may be able to give cryptocurrency traders a rough idea of how the crypto market is feeling and if traders expect future price fluctuations. The new....
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