BTC Price Volatility Index Expected to Drop Further
CryptoNewsTerminal Staff03 Jun, 2024
BTC Price Volatility Index Expected to Drop Further
The BTC price volatility index (DVOL) has been in a downtrend since peaking at 82 on March 11, and is now hovering around 51. According to crypto options exchange Deribit's head of Asia Pacific, Lu Lin, this index is expected to continue to decline. However, Lin cautions against selling options even if the index falls below 50, as the market is currently expecting a rally. Instead, he recommends buying options if the index falls to 40. This aligns with previous observations that the cryptocurrency market is currently in a period of relatively low volatility, which is expected to continue in the near term. This could be due to a number of factors, including the ongoing regulatory uncertainty and the lack of major catalysts. Overall, the DVOL index provides valuable insights into the market's expectations for future volatility. By monitoring this index, traders can make informed decisions about their options strategies.
