Bitcoin's price has fallen from $82,000 to $77,000 since May 15, coinciding with an increase in U.S. Treasury yields. Despite this 6% decline and significant outflows from spot ETFs, Bitcoin's implied volatility remains low. The 30-day implied volatility index (BVIV) is steady at around 42%, near its year-to-date low, suggesting the market may be underestimating potential risks.
Deribit's Chief Commercial Officer, Jean-David Péquignot, notes that the current low volatility presents an opportunity for traders to employ a straddle strategy. This involves buying both call and put options to profit from potential significant price movements in either direction. With Bitcoin at a key breakout level, this strategy could be advantageous ahead of upcoming macroeconomic events.
Bitcoin Price Declines Amid Rising Yields, Implied Volatility Remains Low
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