The biggest cryptocurrency Bitcoin (BTC) $107,955.4broke the record by exceeding 109 thousand dollars on Monday. The price increase brought both actual and expected volatility to levels not seen in 6 months. This activity in the market continues to attract the intense attention of investors.
Mobility is Increasing in the Options Market
DeribitWhile ‘s Bitcoin Volatility Index (BVOL) has brought BTC’s price volatility to the level of 67 in the last 30 days, the Bitcoin Volmex Implied Volatility Index (BVIV) has reached the level of 71. Both indices rose by 2 percent during the day. As is known, expected volatility is derived from option prices and refers to the market’s expectation of predicting future price movements, while actual volatility reflects historical price movements.
market expert Omkar GodboleHe stated that the positive correlation between Bitcoin’s price and expected volatility continues. Godbole said, “This is a sign that investors are especially turning to call options. “Risk conversion analysis reveals that call options are traded at a premium compared to put options that provide downside protection,” he said.
Also Bitwise Europe Research Director Andre DragoschHe emphasized that short-term call options are priced higher than long-term ones. “This is a rare occurrence and a testament to the intense short-term optimism in the market,” Dragosch said. “The amount of open positions in the option markets increased by 44 thousand BTC, which indicates an increase in speculative activity.”
Political Influences and Speculations are on the Agenda
Bitcoin marketAnother dimension of the activity in Turkey is political speculation. GCR trader Mitch Galer“The possibility of President-elect Donald Trump announcing a strategic Bitcoin reserve created expectations for a rapid price rise in the market. “Trump’s effective use of social media increases uncertainty as it has historically mobilized markets,” he said.
Galer announced that the plan to create a potential strategic Bitcoin reserve and possible regulatory freedom predictions will continue throughout the year. cryptocurrency marketHe added that it signals more gains in .
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
