Bitcoin’s Calm May Be Ending as Volatility Rises 📊

Bitcoin’s market is starting to wake up after a long period of quiet trading. The Deribit Volatility Index (DVOL), which measures expected price swings, has jumped to 37 from last week’s 33. Just days ago, it was as low as 26% — one of the quietest readings since records began.

Implied volatility shows how much traders expect prices to move, based on options prices. It measures the annualized range within which traders expect prices to move, with the "at-the-money" level offering a clean read on sentiment. When it rises, it often means bigger moves are ahead. The last time volatility was this low was in August 2023, shortly before Bitcoin surged from $30,000 🐂

Over the weekend, Bitcoin climbed from $116,000 to $122,000. The rally was driven mostly by spot buying rather than heavy leverage, which is seen as a healthier sign for the market. Open interest in Bitcoin futures has been falling through August. That means if traders suddenly pile back in with leverage, any price move could become much larger.

August is usually a slow month for crypto trading, but with volatility climbing back, traders may be getting ready for bigger swings in the weeks ahead 🛫

Hit 🔥 if you want volatility to finally come back!