Bitcoin (BTC) and altcoins It entered October, known as the rise, with great expectations, but the tension between Iran and Israel dealt a big blow to the cryptocurrency market.
As the uncertainty between Iran and Israel continues, investors also become uneasy. While this situation was reflected in the market as volatility, an analyst said that the weekend would be quite volatile.
Speaking to CoinDesk, Arbelos Markets co-founder Joshua Lim said that volatility is expected in Bitcoin this weekend due to the US non-farm employment data to be announced today and geopolitical tensions in the Middle East.
Pointing out that Bitcoin has spent mostly calm weekends since last October, the analyst stated that this situation has changed.
Citing Deribit options data, Lim said Bitcoin is expected to see significant price fluctuations on October 5. According to the data, it was stated that a jump from 39% to 51% in annual implied volatility was expected, especially between October 4-5.
Joshua Lim stated that according to volatility data, investors priced in price fluctuations on Friday and Saturday and said:
” Investors expect more volatility in Bitcoin price on October 4-5. There is a very noticeable fluctuation in the volt curve – on Friday (October 4) it was trading at around 39 vol and on Saturday (October 5) it was trading at 51 vol.
This volatility expectation may be due to the non-farm employment data (NFP) to be released on Friday and geopolitical tensions. The market is pricing in a risk premium from non-farm payroll data, but more importantly, the possibility of an Israeli retaliation following Iran’s move.
“So investors expect volatility to increase in Bitcoin due to non-farm employment data and geopolitical tensions in the Middle East.”
*This is not investment advice.
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