In a recent analysis, Adam from Greeks.live highlighted the marked volatility observed in the cryptocurrency market this week, primarily influenced by former President Trump’s comments. This has led to a significant uptick in Implied Volatility (IV), with Bitcoin (BTC) reflecting a short-term volatility rate of 90%, while Ethereum (ETH) has reached an alarming 110%. Such fluctuations have sparked fear across the market, creating a climate of uncertainty for investors. The current sentiment reflects fragility, as Trump’s remarks become the focal point of trader discussions amidst otherwise stable market conditions.
Institutions operating in the options market are adjusting their strategies, alleviating some selling pressure to facilitate a rise in IV, which they view as a necessary hedging tactic. The elevated uncertainty within the crypto landscape compels market makers to adopt more flexible approaches to safeguard against potential losses. Meanwhile, notable gains have been realized by buyers over the past fortnight, highlighting the ongoing opportunities amid the turbulence.