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Bitcoin Implied Volatility Drops to Near Two-Year Low, But Funding Rate Indicates Bullish Market Sentiment
Summary: According to Deribit's Bitcoin Volatility Index data, Bitcoin's implied volatility has dropped to near a two-year low. The index tracks the 30-day forward-looking annualized price volatility expectation, indicating significant changes in the trading behavior of the largest cryptocurrency. Over the past two months, Bitcoin has been fluctuating within a narrow range of $93,000 to $111,000, ...
According to Deribit's Bitcoin Volatility Index data, Bitcoin's implied volatility has dropped to near a two-year low. The index tracks the 30-day forward-looking annualized price volatility expectation, indicating significant changes in the trading behavior of the largest cryptocurrency.
Over the past two months, Bitcoin has been fluctuating within a narrow range of $93,000 to $111,000, contrasting sharply with its historical price trends. Market analysts attribute the decrease in volatility to multiple factors, with increased selling of bullish options by Bitcoin holders being particularly key.
David Lawant, Head of Research at FalconX, pointed out that this strategy of profiting from selling bullish options effectively suppresses price volatility. Currently, around 80% of Bitcoin options positions in the market are concentrated in the $100,000 to $120,000 price range, forming a natural price cushion zone. It is worth noting that despite the decrease in volatility, the Bitcoin perpetual contract funding rate remains positive, indicating that market sentiment remains bullish.
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Link: Bitcoin Implied Volatility Drops to Near Two-Year Low, But Funding Rate Indicates Bullish Market Sentiment [Copy]
