Deribit’s Bitcoin volatility index (DVOL), a key indicator of market expectations for price swings in the next 30 days, has risen sharply to a 16-month high, signaling turbulence ahead.
The 30-day implied volatility index has climbed from an annualized 41% to 76% in a month, a level that hasn’t been seen since November 2022. Higher implied volatility translates into higher options prices.
The recent DVOL surge seems to have spurred renewed interest in specific strategies, such as call options writing, which allows holders to earn income on their assets.
Deribit, a leading crypto options exchange, has seen a surge in activity as Bitcoin prices have risen this year, with the combined value of outstanding futures and options contracts on the exchange reaching a record high of $32 billion, with options contracts making up nearly $30 billion.
The platform has seen significant interest in call options with strike prices as high as $200,000, reflecting bullish sentiment among some market experts who predict Bitcoin could reach that level by September 2024.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/mar/05/
