As Bitcoin Implied Volatility Soars, One Class Is Profiting From It

Editor's Note: This article comes fromNakamoto Shallot (ID: xcongapp), Odaily is authorized to publish.

Editor's Note: This article comes from

Nakamoto Shallot (ID: xcongapp)

Nakamoto Shallot (ID: xcongapp)

, Odaily is authorized to publish.

Bitcoin’s implied volatility has spiked as market fears are spreading. However, for some traders, this may turn out to be an opportunity, according to theblock.

Bitcoin’s one-month implied volatility has risen from 55% to 65% since midnight Sunday, according to data provided by Skew. A measure of implied volatility measures the market's expectations for a particular asset's volatility over the next month.

Bitcoin remains bearish as traders brace for a tough market ahead. In other respects, due to the intensification of the outbreak of the coronavirus and the intensification of concerns about its economic impact, on the 9th, the global financial market suffered panic selling, and the U.S. stock market crashed at the opening. points, the biggest one-day drop since 1987. As of the close, the Dow Jones index fell more than 2,000 points, closing down 7.79%, the largest one-day drop since 2008 and a new low in nearly a year; the S&P 500 index fell 7.60%, and the Nasdaq index fell 7.29%. Talks between OPEC and Russia were disrupted over the weekend, a development that sent crude prices down 30%.

The VIX index, which measures 30-day implied volatility, surged to 62 in morning trade, approaching levels seen during the financial crisis.