Analysis of Implied Volatility for Bitcoin and Ether Options Indicates Calm Market Expectations

The current levels of implied volatility for bitcoin and ether options are pointing towards a relatively calm market in the coming weeks, according to analysts. Implied volatility rank and percentile indicators suggest that traders are not expecting a lot of activity in the near future.

The Deribit Volatility Index, which measures the market’s expectation of future volatility for bitcoin, has shown a significant drop since mid-May. QCP Capital analysts also noted a sluggish market, attributing the decrease in implied volatility to the approval of spot ether exchange-traded funds by the U.S. Securities and Exchange Commission.

Despite the approval of spot ether ETFs, which may not go live for a few weeks or months, some traders are hedging against potential downside risks. The put-call ratio for ether options has been rising, indicating a bearish sentiment among traders. This trend could be a result of traders preparing for potential delays in the launch of these financial products on exchanges.

Overall, the market seems to be in a state of anticipation, with traders closely monitoring the situation and adjusting their strategies accordingly. Stay tuned for more updates on the evolving crypto market dynamics.