Bitcoin (BTC), the leading cryptocurrency by market value, continues to trade directionless above $90,000, with implied volatility in meltdown as the year end approaches.
Volmex's BVIV, which tracks bitcoin's options-based 30-day implied volatility, has dropped to an annualized 45.10%, the lowest since Nov. 10, according to #tradingview data. That's down from a peak of 65% observed on Nov. 21.
Coins like ZEC and AAVE have gained over 9% in the past 24 hours, outpacing BTC and ether (ETH). HYPE, TAO and SUI are up over 5% while KAS and TRX are down over 1%. The CoinDesk 20 and CoinDesk 80 Indices are up over 2% each, pointing to some bullishness in the broader market.
Analysts say they expect the choppy price action in BTC to continue.
"Traders should expect high-volatility chop and avoid extrapolating intraday strength," Timothy Misir, head of research at #BRN , said in an email.
"The market is stabilizing, but the foundation remains fragile. Price action is constructive, yet liquidity is thin and ETF flows are split, the hallmark of a market searching for direction rather than committing to one," he said.
This is consistent with financial markets' tendency to take time to recover following a crash that dents investor confidence and clears excessive leverage.
Speaking of leverage, cumulative open interest in BTC and ETH futures and perpetual futures has dropped by 36% and 35%, respectively, over the past three months. Open interest in solana (SOL) and XRP (XRP) has declined 53% and 59.5%, respectively, with dogecoin (DOGE) seeing a 70% decline.
Clearly, there has been a major offloading of risk, led by memecoins.
In traditional markets, gold has resumed its rally, with the dollar weakening to multiweek lows following the Fed meeting. Stay alert!
Source: Binance News / Bitdegree / #CoinDesk / Coinmarketcap / Cointelegraph / Decrypt
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