Bitcoin Implied Volatility Hits Highest Level in Over Two Months
- Bitcoin’s implied volatility (IV) gauge reached $121,792.92, a two-and-a-half-month high.
- The bitcoin implied volatility index (BVIV) surpassed 42%, the highest since late August.
- Historically, both October and November are strong months for BTC, with an average of over 45% returns in November.
- Recent data shows that bitcoin has averaged approximately a weekly gain of about 6% over the next two weeks.
- Since late last year, BTC’s IV has often increased during price pullbacks, indicating market dynamics similar to traditional finance.
The current rise in Bitcoin’s implied volatility suggests traders expect significant price movements ahead as historical patterns indicate stronger returns in the latter half of October.
With the BVIV climbing to over 42%, expectations are set for continued increases in volatility as Bitcoin approaches historically bullish periods.(Source)
