Bitcoin Reaches Record-High Above $109,000 Amid Increased Volatility
Bitcoin (https://holder.io/coins/btc/) reached a record high exceeding $109,000, leading to increased implied and realized volatility.
- Realized volatility on the Bitcoin Volatility Index (BVOL) is 67, while the Implied Volatility Index (BVIV) stands at 71.
- Both indexes rose approximately 2% in one day.
- There is a positive correlation between bitcoin's price and implied volatility, indicating traders are pursuing call options.
- Short-duration calls are currently priced higher than longer-duration ones, signifying strong short-term bullish sentiment.
- Open interest in options has grown by 44,000 BTC, indicating increased speculative activity.
- Traders anticipate a price surge due to President-elect Donald Trump's possible announcement regarding a strategic bitcoin reserve.
Mitch Galer highlights the impact of Trump's social media influence on market movements and ongoing speculation around potential deregulation, contributing to optimism for further gains in crypto markets this year.