Bitcoin Volatility Declines To Sixteen-Month Low, Signaling Sharp Move

BTC volatility has dropped to a sixteen-month low, indicating that a sharp move in Bitcoin might be ensuing.

Notably, the Bitcoin options aggregate open interest has climbed to around two billion USD, which is thirteen percent below the all-time high. Even though the open interest is still profoundly concentrated on Deribit crypto derivatives exchange, the CME has also reached a value of three hundred million USD.

Phases of low volatility are catalysts for more significant price actions as it indicates that market makers and arbitrage desks are eager to sell protection on lesser premiums.

The present aggregate open interest of over four billion USD is still less as compared to the August top at 5.7 billion USD. However, it is still noteworthy.

There might be a number of reasons that are holding back a bigger figure. This includes the present BitMEX CFTC charges, KuCoin’s one hundred and fifty million USD hack, and high volatility.

In spite of fifty-seven percent being the lowermost figure in the last sixteen months, it still signifies a substantial premium, particularly for longer-term options.

Presently, unless there is a precise price range and time frame in mind, it seems for now sticking with perpetual futures is the best solution, at least for the bulls.