Implied volatility of BTC and ETH declined rapidly after the BTC
Implied volatility of BTC and ETH declined rapidly after the BTC halving, with the BTC Dvol falling from 75% to 65%, a new low since March.
On the one hand, the stagnant market has caused the market realize volatility a significant drop, suppressing implied volatility from the pricing side. On the other hand, the margin released from the quarterly big delivery had a certain wait-and-see sentiment before the halving, and as the market gradually stabilized around the halving, the continued selling by the big players has further suppressed volatility expectations.
Historically it has been a period of price weakness for BTC from mid-April onwards, and carving out a view that selling May calls now is cost effective.
On the one hand, the stagnant market has caused the market realize volatility a significant drop, suppressing implied volatility from the pricing side. On the other hand, the margin released from the quarterly big delivery had a certain wait-and-see sentiment before the halving, and as the market gradually stabilized around the halving, the continued selling by the big players has further suppressed volatility expectations.
Historically it has been a period of price weakness for BTC from mid-April onwards, and carving out a view that selling May calls now is cost effective.