Sharp Bitcoin price move brewing as BTC volatility falls to a 16-month low

Bitcoin (BTC) options aggregate open interest has increased to $2 billion, which is 13% below the all-time high. Although the open interest is still heavily concentrated on Deribit exchange, the Chicago Mercantile Exchange (CME) has also reached $300 million. In simple terms, options derivatives contracts allow investors to buy protection, either from the upside (call options) or downside (put options). Even though there are some more complex strategies, the mere existence of liquid options markets is a positive indicator. For example, derivative contracts allow miners to stabilize their income which…

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OMG the Volatility! LINK Crashes as $12K Evades Bitcoin: Weekly Recap

Another week, another attempt to break higher meets resistance. Bitcoin (BTC) entered the week surging past $12,000 only to retrace below that key level as altcoins continue to rise and fall. At the same time, it appears Ethereum’s well-documented problems have caught up to it faster than the blockchain can confirm transactions right now. Cryptocurrency market weekly performance. Source: Coin360 What goes up, must come down The mantra is increasingly becoming the theme as Bitcoin pops above a key level only to retrace. This time, BTC surged past $12,000 for…

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Bitcoin Investors Unfazed By Great Twitter Hack, as Volatility Remains Stable

Bitcoin traders seem unfazed by the massive Twitter hack on Wednesday, as the price of the top cryptocurrency has largely remained steady. Prominent U.S. figures including billionaires Bill Gates, Elon Musk, and Jeff Bezos were targeted by hackers in an apparent Twitter bitcoin (BTC) scam. The official accounts of former president Barack Obama as well as aspiring presidents Joe Biden and Kanye West were also hacked. According to data from crypto analytics firm Skew, bitcoin’s implied volatility “is having a muted reaction to the Twitter hack.” Over the past one…

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Ethereum Volatility Drops Below Bitcoin’s but ETH Options Are Bearish

Ether (ETH) options implied volatility, a measure of the expected price swings as per the options markets premium, has dropped below Bitcoin’s (BTC) for the first time ever.  This could signal that investors have given up expectations of a price decoupling, or they simply expect ETH price moves to mirror Bitcoin.  In the case of potential catalysts for significant price moves, implied volatility tends to move up whereas an absence of triggers causes volatility to recede, alongside a diminishing premium on options markets. Deribit options implied volatility. Source: Skew The…

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Traders Buy Oil Futures With Crypto Amid Record Volatility

The Binance-owned crypto derivatives exchange, FTX, has introduced oil futures following the recent record crash in U.S. oil prices — which fell as low as minus-$40 on April 20. FTX’s contracts will expire at the spot price of West Texas Intermediate, or WTI, plus $100 to protect against negative settlement prices. The exchange notes that should the spot price of oil fall below minus-$100, “FTX OIL contracts “can theoretically expire negative.” FTX launches crypto-based oil contract trading FTX comprises a top-10 ranked Bitcoin (BTC) futures exchange by both volume and…

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