Bitcoin options data reveals a significant increase in implied volatility (IV) for one-month options, now nearing or surpassing the three-month options IV. This unusual trend suggests heightened short-term risk pricing, with demand for risk rising and buyers outpacing sellers. The IV increase is not a short-term liquidity squeeze but a sustained trend, indicating market anticipation of potential black swan events. Historically, such IV term structure inversions have occurred during significant market disruptions, highlighting extreme short-term risk amplification.
Bitcoin Options Show Unusual Short-Term Volatility Spike
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