Data: Deribit Bitcoin Volatility Index Surpasses 44, Recording Largest Increase Since November 2024

Odaily News: As Bitcoin experienced a significant drop on Thursday, volatility in the options market rose notably. The Deribit Bitcoin Volatility Index (DVOL) quickly climbed from around 37 to above 44, marking its largest increase since November 2024. DVOL is considered the "VIX" of the crypto market, reflecting the options market's expectations for price volatility over the next 30 days. An increase in this indicator means traders are paying higher premiums for downside risk, leading to higher option prices and a rise in market risk aversion sentiment. This surge in volatility occurred amid a resurgence of macroeconomic uncertainty, including rising risks of a US government shutdown and noise surrounding the future leadership of the Federal Reserve. However, from a historical range perspective, Bitcoin's implied volatility has not yet entered extreme levels. (CoinDesk)