SUSPENDED IN JACKSON HOLE!
Bitcoin is preparing for moderate volatility ahead of Jerome's key speech #Powell
The world of cryptocurrencies is on edge awaiting the speech of the Federal Reserve Chair, #JeromePowell , at the Jackson Hole symposium. Unlike expectations of major upheavals, options and derivatives analysts indicate that volatility #bitcoin could be more moderate than many think.
According to Pulkit Goyal from Orbit Markets, options of #BTC are pricing in a price movement of approximately ±2.0% following Powell's speech.
The 24-hour implied volatility index (BVIV1D) has risen to 49% annualized, translating into a price movement of 2.5%, slightly above the daily average of 1.18% over the past 30 days.
Market Sentiment: The possibility of a "balanced" or cautious tone from Powell, which does not signal clear rate cuts, has caused some traders to buy put options to hedge against a potential downturn. The asymmetry in risk options indicates that investors are preparing for a potential drop.
No Defined Direction: It is crucial to remember that volatility is independent of direction. While the market leans towards a potential downward volatility, the movement can occur in any direction.