Bitcoin Market Faces Potential Volatility, Derive Reports
Recent insights from the decentralized crypto on-chain options platform Derive suggest that current calm in the bitcoin market may precede significant price volatility.
- BTC has consolidated in the $80K-$85K range since March 12, following a drop from $100K.
- Key factors influencing this decline include President Trump's tariffs and minimal new purchases for the U.S. BTC reserve.
- Volatility metrics have decreased, with weekly at-the-money volatility dropping to 49% from 91% earlier this month.
- This low-volatility environment is expected to revert, potentially leading to increased price turbulence.
- Possible triggers for volatility include geopolitical events and changes in crypto regulatory policies.
- Wednesday's Federal Reserve rate decision could impact markets, with traders anticipating two to three rate cuts later this year.
- BlackRock noted that recession fears may limit the extent of potential Fed rate cuts.
- Downward pressure on equity markets could further accelerate declines in crypto prices.