#Bitcoin volatility surges to new highs#
Hot Topic Overview
Overview
Bitcoin volatility has recently surged to new highs, with both implied and realized volatility reaching their highest levels since August 2024. This phenomenon is closely linked to Bitcoin's price hitting new highs, with traders chasing options, especially call options, intensifying volatility. Market analysts believe that traders' expectations of Donald Trump potentially announcing a strategic Bitcoin reserve, as well as optimism about crypto regulation easing, have driven Bitcoin's price surge and further amplified volatility.
Ace Hot Topic Analysis
Analysis
Bitcoin volatility recently surged to a new high, reaching its highest level since August 2024. This is primarily driven by a surge in options trading activity, with traders chasing options, especially call options, leading to both implied and actual volatility hitting new highs. Omkar Godbole, CoinDesk's market analyst, points out that there is a positive correlation between Bitcoin's price and implied volatility, indicating traders' optimistic outlook on future price fluctuations. Furthermore, the price of short-term call options is higher than that of long-term call options, reflecting strong bullish sentiment in the short term. Andre Dragosch, Bitwise's European research director, states that open interest in options has increased by 44,000 Bitcoin, suggesting heightened speculative activity. Meanwhile, the market is also buzzing with excitement over rumors of US President Donald Trump potentially announcing the establishment of a strategic Bitcoin reserve, adding uncertainty to the coming days and fueling the crypto market's optimism for further gains this year.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin volatility has surged to new highs, driven largely by a surge in options trading, particularly the premium on call options exceeding that of put options.
Traders expect bitcoin prices to rise rapidly, as they believe Donald Trump may announce the creation of a strategic bitcoin reserve.
Bitcoin price has a positive correlation with implied volatility, suggesting that traders are chasing options, particularly call options.
The price of short-term call options is higher than that of long-term call options, which is a rare occurrence and suggests strong short-term bullish sentiment.