Bitcoin's Implied Volatility Rises to 20-Month High
CryptoNewsTerminal Staff06 Aug, 2024
Bitcoin's Implied Volatility Rises to 20-Month High
Bitcoin's implied volatility index (IV) reached its highest level in 20 months on August 5, hitting 97.14, as per data from Cointelegraph. This surge indicates that traders are actively purchasing BTC and ETH put (sell) spreads to hedge against potential market downturns. According to Ed Hindi, Chief Investment Officer at Tyr Capital, this could be a sign of excessive optimism in the market. Despite the recent price recovery in BTC, he anticipates further declines, though he remains uncertain whether prices will fall below $45,000. Disclaimer: This article does not constitute financial advice.