Deribit Bitcoin Volatility Index Hits Ever Low, Chasing Sideways Action
Bitcoin's implied volatility index has fallen to its lowest level since the crypto options exchange launched the tracker in early 2021.
News
Join us on social networks
Crypto Options Trading Deribit's forward-looking Bitcoin Volatility Index (BTC) — used as a sort of crypto fear gauge — has reportedly hit a two-year low, indicating a possible lack of price turbulence for Bitcoin in the near future.
On July 24, crypto derivatives analytics platform Greeks Live noted that the Bitcoin and Ether (ETH) volatility index fell to a multi-year low of 37%.
Furthermore, the current implied volatility level has fallen to the lowest level in crypto history according to the DVOL algorithm, he added.
The Dvol (volatility index) for BTC and ETH has fallen to 37%, the lowest level in history since two years ago, and the current level of implied volatility, as projected by Dvol's algorithm, has fallen to the lowest level in crypto history. Continued low liquidity has severely depressed… pic.twitter.com/GdWE4GHXZw
— Greeks.live (@GreeksLive) July 24, 2023DVOL is Deribit's implied volatility index. It gives an indication of the expected volatility for a crypto asset over the next 30 days by analyzing options activity. Simply put, the index can indicate investors' expectations of a crypto's price turbulence.
Greeks Live noted that continued weakness in liquidity has sharply reduced implied volatility (IV) levels for Bitcoin.
This suggests that derivatives traders are unconvinced that there will be major moves in crypto markets in the near term and that the lack of volatility is likely to continue, he said.
"There is no doubt that overall cryptocurrency volatility is declining, which will inevitably force cryptocurrency implied volatility to continue to set new lows."
Related:
Bitcoin's implied volatility index has fallen to its lowest level since the crypto options exchange launched the tracker in early 2021.
News
Join us on social networks
Crypto Options Trading Deribit's forward-looking Bitcoin Volatility Index (BTC) — used as a sort of crypto fear gauge — has reportedly hit a two-year low, indicating a possible lack of price turbulence for Bitcoin in the near future.
On July 24, crypto derivatives analytics platform Greeks Live noted that the Bitcoin and Ether (ETH) volatility index fell to a multi-year low of 37%.
Furthermore, the current implied volatility level has fallen to the lowest level in crypto history according to the DVOL algorithm, he added.
The Dvol (volatility index) for BTC and ETH has fallen to 37%, the lowest level in history since two years ago, and the current level of implied volatility, as projected by Dvol's algorithm, has fallen to the lowest level in crypto history. Continued low liquidity has severely depressed… pic.twitter.com/GdWE4GHXZw
— Greeks.live (@GreeksLive) July 24, 2023DVOL is Deribit's implied volatility index. It gives an indication of the expected volatility for a crypto asset over the next 30 days by analyzing options activity. Simply put, the index can indicate investors' expectations of a crypto's price turbulence.
Greeks Live noted that continued weakness in liquidity has sharply reduced implied volatility (IV) levels for Bitcoin.
This suggests that derivatives traders are unconvinced that there will be major moves in crypto markets in the near term and that the lack of volatility is likely to continue, he said.
"There is no doubt that overall cryptocurrency volatility is declining, which will inevitably force cryptocurrency implied volatility to continue to set new lows."
Related:
What's Your Reaction?
