Summary
- It was reported that Bitcoin's implied volatility (IV) has significantly rebounded to 37%.
- This is said to be a signal that a prolonged sideways market may be ending.
- It was explained that if there is an inflow of leverage, price volatility could increase further.
Bitcoin (BTC) implied volatility (IV) has risen to 37%, leading to analysis that price volatility could increase.
On the 11th (local time), CoinDesk reported, "Last week, Bitcoin's short-term implied volatility decreased to 26%, reaching its lowest level since August 2023," but added, "Today, the implied volatility surged to 37%, hitting its highest point in weeks." They further explained, "This may signal the end of a prolonged period of sideways movement in the market."
Special attention was paid to the inflow of leverage. The media outlet stated, "This Bitcoin rise was driven by spot trading," and continued, "Since August, open interest in Bitcoin has steadily decreased. Therefore, if leverage enters the market, price volatility could increase even more."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
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