Deribit's Bitcoin volatility index, used as a measure of crypto fear, has reached its lowest level in two years, indicating a possible lack of price turbulence for Bitcoin in the near future. The volatility index for both Bitcoin and Ether has fallen to a multi-year low of 37%, with the current implied volatility level at the lowest level in crypto's history. The continued low liquidity has severely depressed implied volatility levels for Bitcoin, suggesting that derivatives traders are not confident that there will be any major moves in crypto markets in the short term. Other analysts using different metrics have echoed the sentiment, with Bitcoin's weekly Bollinger Bands contracting to record levels.
All Comments