Bitcoin Volatility Index Reaches Near Two-Year Low, Affecting Strategy’s Position
Recent trends indicate a decline in retail interest in bitcoin, as Google searches for the cryptocurrency have dropped below rank 25, compared to rank 40 during its November price rally. Bitcoin has been trading between $102,000 and $110,000, reflecting low volatility with the Bitcoin Volatility Index at just above 40 - one of the lowest levels in over two years.
Key points include:
- The implied volatility metrics from Deribit show an IV Rank of 2.3, indicating minimal volatility compared to the past year.
- Strategy (MSTR) is issuing new perpetual preferred equity to maintain its multiple net asset value (mNAV) above 1 instead of using common stock offerings.
- The iShares Bitcoin Trust (IBIT) is gaining traction among conservative investors due to reduced volatility.
- The upcoming U.S. jobs report may impact market volatility; unemployment rate is expected to remain at 4.2% with non-farm payrolls projected at 130,000.
Market Movements
- BTC remains stable at $105,875.59.
- ETH is up 1.07% at $2,644.68.
- CoinDesk 20 index increased by 0.51%.
- DXY is unchanged at 99.18; Gold rose 1.01% to $3015.9/oz.
Technical Analysis
- Ethereum has shown resilience, maintaining support above the 200-day exponential moving average.
- Sustained strength could lead to a price movement beyond $3,000 in the short term.
Watch for upcoming events such as U.S. House hearings on digital assets and various token upgrades scheduled throughout June.