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Bitcoin volatility has hit its highest peak as it has been in the last 20 months signaling bleaker future for it together with the rest of the cryptocurrencies. The charts showed the Bitcoin Volmex Implied Volatility Index, which exploded to 97 on the 5th of August. 14, hitt[ing] its highest level since November, when cryptocurrency exchange firm FTX went bankrupt, according to data for the crypto news source.
Bitcoin Volatility Index at 20-Month High
Bitcoin Volatility index– Bitcoin Volmex Implied Volatility Index reached at 97.14 On August 5, UX received equally the day’s high of Bitcoin of $49,813. This can be described as the highest volatility level since the fall of FTX in November last year. It has been noted that volatility has recently increased on account of both fundamental factors and trader psychology, thus attached to Bitcoin’s future fluctuations.
Ed Hindi, Chief Investment Officer at Tyr Capital was quick to point out that traders are indeed going all out and are buying puts and put spreads on Bitcoin and Ethereum in a bid to hedge against further losses. “Put skew is extremely well bid. This may be a sign that the market is overextended,” Hindi said. This sentiment is reflected in the 24-hour put-to-call volume ratio, which stands at 1.13, with 53.06% puts and 46.94% calls, according to CoinGlass data.
Traders Hedge Against Further Declines
As of the publication of this book the Dow Jones Industrial Average stood at $56,676; however, the futures traders continue to be wary. The put-to-call ratio signifies a bearish outlook, which means that traders are also in anticipation of further losses on the Bitcoin volatility price levels. Hindi feels that downside risk may be higher but doesn’t expect it to go below $45,000.
“Whether we trade down there will depend on how far away we are from the end of the JPY carry trade unwind We are getting closer claim Wolfe. ” Such a view implies the dependence and interaction of worldwide financial markets and its influence on cryptocurrencies value.
Besides, the put-to-call ratio, another popular indicator, namely Bitcoin options volume, decreased by 39.73 percent in 24 hours; on August 6, for example. This fall shows that futures traders are not sure about the positive or negative direction of Bitcoin price which also affects the market instability.
Mixed Sentiments Among Traders
Whereas some of the traders are placing their bets on further downside movements on BTC/USD, there are other traders who are expecting the digital asset to recover in the short term. crypto trader with the nick Yoddha has labelled the current trends as THE best buy signal of 2024 “A turning point and a major BTC price bounce back is predicted by other traders.
“Aggressive sell-off would assume price to stall for a bit and give us a range,” pseudonymous crypto trader RektProof said in an August 6 post available on X (formerly Twitter). According to this concept, after the latest swings, Bitcoin can stabilize and then either rise or fall heavily.
Bitgrow Lab, founder, Vivek Sen chimed in and said: “Expect a HUGE reversal soon.” This shows that there is no prevalent consensus in the preparation of the cryptocurrency community in the provision of Bitcoin’s next move. While some traders are getting more bearish others believe that the current market situation may be signaling more of a rebound.
Final Thoughts on Bitcoin Volatility
The concern is that the recent increase in Bitcoin volatility to a 20-Month high shows that there is undecided feeling among the stakeholders in the Cryptocurrency Market. With this, Bitcoin Volmex Implied Volatility Index has hit 97.14 and the further value of put-to-call ratio as a warning light that signals ‘Bearish’, traders are protecting themselves against a further plunge. On the other hand, there is opinion with the community that may sees this as the buy signal and expect reversal.
Due to constant fluctuations of Bitcoin’s price movements, traders and investors will be watching the market factors and other aspects of the global economy to see the future of the currency. The next two to three months will be critical in whether Bitcoin will continue to feel the pain or come out stronger from this phase of the high volatility.
This news article from Turkishnyradio has shared the experience of the cryptocurrency market, giving specific data on trader’s sentiments and major Bitcoin’s characteristics.
