|
|
On January 20th, according to Glassnode data, the implied volatility of Bitcoin options has experienced a reversal since mid-October of the previous year. Since May 2021, the implied volatility has been on a continuous decline amid diminishing market interest during the bear market. However, this downward trend appears to have reversed recently, with the implied volatility more than tripling from its low point in October, reaching over 97% this week.
As spot ETF products open new doors for institutional and retail capital, the volatility characteristics of Bitcoin may start to evolve. It's also noteworthy that the infrastructure, liquidity, and depth of the options market have matured significantly in 2023, with open interest contracts currently on par with the futures market. |
|
Post time 31-1-2024 21:45:03