Bitcoin’s Jackson Hole Test: How Card Could Powell’s Address Hit BTC Prices?

The Answer Points to Moderate Volatility, Not the Extreme Swings that the Widespread Attention on the Event Might Suggest.

“BTC options are pricing in about a ± 2.0% Move Armund Powell’s Jackson Hole Speech,” Pulkit Goyal, Head of Trading at Crypto Market Maker Orbit Markets, Told Condesk. Orbit Specializes in Crypto Ops and Structured Derivatives.

Traders Use The Prting of Options with Different Strikes Prices and Maturities and Implied Volatility and Option Greeks to Gauge An Expectioned Range of Price Movent. Implied volatility refers to the Market’s Expection on How Much the Underlying Asset is Expert to Move Over a Special Time Frame.

Volmex’s One-Day Implied Volatility Index (BVIV1D) Has Increated to and Annualized 49% as of Writing, The Highest Since May 26, Accounting To Data SOURCE TRADINGVIEW. That equates to a 24-hour price swing of 2.5%. That’s slightly Higher than the averaage Daily Move of 1.18% Over The Past 30 Days.

Note that volatility is Direction-Agnostic, Meaning Price Swings Hinted by Options and Implied Volatility Indiches Can Unfold in Either Direction.

That said, Downside volatility looks more likely in casse Powell Sounds Balanced, Contrasting WideSpread Expectations for Rate Cuts. Some Traders Have Been Picking Up Put Options Preparing for Such An Outcome.

“If his tone leans more Balanced than Dovish, Markets Could See A Retracement, WHICH HAS DRIVEN DEMAND FOR DOWNSIDE PROTHER Call, “Goyal Told Coindesk.

Powell Is Schemeduled to Speak Friday Morning at the Fed’s Annual Jackson Hole Economic Policy Symposium.