– The Bitcoin Implied Volatility Index on Deribit has reached its lowest levels since early 2021.
– The volatility index for both Bitcoin and Ether has fallen to a multi-year low of 37%.
– The current implied volatility level is the lowest in crypto’s history, indicating a lack of price turbulence for Bitcoin.
– Low liquidity has contributed to the depressed implied volatility levels.
– Derivatives traders are not confident in major moves in the crypto markets in the short term.
– Other analysts have also observed low volatility in Bitcoin, with Bollinger Bands contracting to record levels.
– Crypto markets have been rangebound since mid-March, with little deviation from a total capitalization of around $1.2 trillion.
