Overview

The unexpected stillness in the Bitcoin market may soon be disrupted, setting the stage for notable price fluctuations, according to Derive, a decentralized crypto options platform.

Key Insights

• The current market calm could be a precursor to a storm of volatility.
• Factors influencing this potential volatility include geopolitical tensions in Ukraine, shifting regulatory landscapes, and upcoming decisions from the Federal Reserve regarding interest rates.

Historically, periods of low volatility are often followed by sharp price movements. As of now, Bitcoin is remaining steady within the $80,000 to $85,000 range, following previous declines from $100,000. The recent consolidation in price has coincided with decreasing volatility metrics.

“BTC’s weekly at-the-money (ATM) volatility has dipped below 50% to 49%, near monthly lows of 45%. Realized volatility has also dropped from 91% at the beginning of the month to 54% today,” Forster noted in his analysis.

Moreover, the possibility of a continuous downturn in equity markets could suppress crypto prices further, fueling a potential surge in volatility as the market reacts.

For further updates, follow the insights shared directly from Derive.