“BTC Currently Faces Low Volatility, But A Storm Could Be Coming, Derive’s Nick Forster Said.”, – WRITE: www.coindesk.com
Since March 12, BTC HAS SETTLED in the $ 80k- $ 85k Range in a Consolidation Typical SEEN AFTER A NOTable Directional Move. PRICES TANKED FROM $ 100K to Under $ 80k in Preceding Weeks Due to Several Factors, Including President Donald Trump’s Tariffs and Disappinthment About the Lack of New Purchases.
With the Latest Consolidation, Key Volatility Metrics Have Declined, Nearing MONTHLY LOWS. Volatility, However, is Mean-Reverting, Meaning the Low-Volatility Regime Could Soon Pave the Way for Price Turbulence, Accounting To Derive.
“BTC’s Weekly at-the-Money (ATM) Volatility Has Dipped Beped 50% to 49%, Approaching MONTHLY LOWS OF 45%. REALized VALATY HAS ALSO DROPPED FROM 91% at. Founder of Derive, Wrote in A Recent Note Shared with Coindesk.
It is important to remember that volatility is price agnostic, meance that the expectioned increase in volatility does not index of the price movement in bitcoin.
“Volatility is mean-reversing, so we expect it to rise soon, Likely to Levels Seen In February (60-70%),“ Forster Added.
WHETHER PRICES Rise or Fall, Volatility Can Increase, Suggesting that Significant Price Swings Could Occur In Either Direction.
Access to Derive, Several Factors Could Trigger Volatility, Including “A Ceasefire (or Lack Thereof)
Derive is the World’s Leading on -chain Ai-Powered Options Protocol with A Total Value Locked of Nearly $ 100 Million. The Protocol Has Registered A Cumulative Trading Volume of $ 15 Billion To Date.
Wednesday’s Federal Reserve Rate Decision Could Move Markets as Well.
The Central Bank Is Likely to Kiepe Rates UnChanged, With Traders Prting Two To Three Rate Cuts Later This Year. But a dovish surprise Could Recharge Bulls’ Engines for a Sharp Move Higher.
Potential Fed Rate Cuts, However, Could Be Limited, Account to Blackrock.
“Markets have priced in about two to Three 25 Basis Point Rate Cuts this Year, Versus Expectations for Just One Earlier this year. We THINK THINK THIS REFLECTS US RECESSION FECESOINOCONOOUS EVENUOUS EVENCE EVENC to a downturn.
The expectioned volatility Boom Could Happen to the Downside Should Equity Markets Continue to Fall, Accelerating the Decline in Crypto Prices.
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