High Probability Increase in Volatility in Bitcoin

Bitcoin Market Enters a Turbulent Period

Bitcoin's implied volatility sharply increased this week. Deribit's DVOL index rose significantly from around 37 to over 44. This development occurred in direct correlation with the wave of selling in the markets.

The rise in the DVOL index and the parallel movement in VIX reflect a general risk-off environment. However, Bitcoin's implied volatility is still moderate compared to historical standards. The implied volatility ranking is 36, with a percentile around 50.

The options market is showing a cautious approach instead of panic following the liquidation of over $1.7 billion in bullish positions. This situation indicates that investors are in fragile positions and are expecting more volatility in the coming days.