The forward-looking bitcoin volatility index (DVOL) of crypto options exchange Deribit is offering insights into the market's expectations for price turbulence over the next 30 days, similar to CBOE's volatility index, VIX, for equities. A key difference this year is that while the VIX continues to serve as Wall Street's fear gauge, rising during bouts of risk aversion, the DVOL has developed a positive correlation with bitcoin's price. The positive correlation means call options tied to bitcoin are more attractive than puts during bearish moves. DVOL measures bitcoin's 30-day expected volatility using Deribit's options order book. According to observers, the fear of missing out could soon drive stronger demand for options and push DVOL higher.
(By Omkar Godbole)
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