Analysis: After Reaching a Historic High, Bitcoin's Volatility Climbs to Its Highest Level in Six Months
According to a report from CoinDesk, Bitcoin has reached a historic high of over $109,000, with both implied volatility and realized volatility hitting their highest levels since August 2024.
"The positive correlation between Bitcoin's price and implied volatility remains intact. This suggests that traders are chasing options, particularly call options, as the risk reversal shows a premium on call options relative to put options that provide downside protection," said Omkar Godbole, a market analyst at CoinDesk.
"Mitch Galer, a GCR trader, stated, 'Trump's powerful use of social media has historically influenced markets, increasing uncertainty in the coming days. Speculation regarding strategic cryptocurrency reserves and potential regulatory easing has led to an optimistic outlook for further gains in the crypto market this year.'"
