Mars Finance reports that as Bitcoin experienced a significant decline on Thursday, volatility in the options market surged notably. The Deribit Bitcoin Volatility Index (DVOL) rapidly climbed from around 37 to above 44, marking the largest increase since November 2024. DVOL is considered the “VIX” of the crypto market, reflecting market expectations for price fluctuations over the next 30 days. The upward movement of this indicator suggests traders are paying higher premiums for downside risk, with rising option prices and increased market risk aversion. This spike in volatility occurs amid renewed macroeconomic uncertainties, including rising risks of a US government shutdown and noise surrounding the future leadership of the Federal Reserve. However, based on historical ranges, Bitcoin’s implied volatility has not yet entered extreme levels.
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Data: Deribit Bitcoin Volatility Index breaks 44, recording the largest increase since November 2024
Mars Finance reports that as Bitcoin experienced a significant decline on Thursday, volatility in the options market surged notably. The Deribit Bitcoin Volatility Index (DVOL) rapidly climbed from around 37 to above 44, marking the largest increase since November 2024. DVOL is considered the “VIX” of the crypto market, reflecting market expectations for price fluctuations over the next 30 days. The upward movement of this indicator suggests traders are paying higher premiums for downside risk, with rising option prices and increased market risk aversion. This spike in volatility occurs amid renewed macroeconomic uncertainties, including rising risks of a US government shutdown and noise surrounding the future leadership of the Federal Reserve. However, based on historical ranges, Bitcoin’s implied volatility has not yet entered extreme levels.