Uncertainty in options markets has increased ahead of the final decision on spot Bitcoin exchange-traded fund (ETF) applications.
While the cryptocurrency market was eagerly awaiting the decision on spot Bitcoin ETF applications, Bitcoin options markets were dragged into uncertainty. Increasing volatility in derivatives transactions and the impact of “fake” spot Bitcoin approval news on the market further confused both the options and futures markets.
Making a statement on the subject, ETC Group Research Manager André DragoschHe explained that investors were pushed into more uncertain waters following the increase in implied volatility:
Bitcoin options traders are bracing for higher uncertainty ahead of possible ETF approvals following a clear increase in implied volatility. This higher premium also indicates that options traders are preparing for higher uncertainty this week, indicating that most traders expect a definitive decision by the SEC by the end of this week rather than next week.
This data, called implied volatility and interpreted as “implicit/expected” volatility, increases especially when more people enter the market and buy options.
Out-of-the-money implied volatility, which is the market’s estimate of a possible move in price, is the highest for Bitcoin, according to The Block’s Data Dashboard. The highest level of the year with 86.3% reached.
Especially in days where important decisions are to be made and uncertainty continues, as in the days we are living in, when everyone has a different perspective, the unknown in question reaches its peak.
According to Bloomberg analysts, the US Securities and Exchange Commission (SEC) will open spot Bitcoin ETF applications today. 00.00-01.00 CEST can announce that the waters approve.
According to CoinGecko data, in the last 24 hours 2.9% value Loser Bitcoin, at the time of writing from $45,405 is being traded.