The implied volatility of short-term crypto options has risen significantly as the Federal Reserve prepares to announce its latest interest rate decision on Thursday at 3:00 AM. Bitcoin's short-term implied volatility has exceeded 45%, Ethereum's has reached 63%, and Solana's has surpassed 60%, marking an increase of over 10% compared to last week. Despite the volatility, market consensus suggests that the Fed is unlikely to cut rates, with expectations of maintaining the status quo until the end of the month. With over a quarter of options set to expire in January, a decrease in implied volatility is anticipated. This environment presents a potential opportunity for selling short-term options.
Crypto Options Volatility Surges Ahead of Fed Rate Decision
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