Married at first sight: Connie Crayden debuts dramatic new hairstyle
Lily James’ public shame as she is accused of affairs with Dominic West and Armie Hammer – Pajiba Entertainment News
Jon Stewart to host news series at Apple – Variety
What happens when the lights go out?  An analysis of ETFs when liquidity disappears – ETF Stream
Google creates special Android security team to find bugs in sensitive appsZDNet
Emily Ratajkowski Serves Pregnancy Style As You’d Expect & What Else For October 27, 2020 – LaineyGossip
Stock exchange today with Jim Cramer: buy the AMD, Xilinx contract – TheStreet
Shares get off to a wobbly start as hopes of virus help fade – ABC News
Liverpool squad: Divock Origi starts Champions League clash – Sadio Mane, Mohamed Salah and Roberto Firmino on the bench
Apple device management provider Addigy sees increased demand for MSPs amid remote work trend – Reuters
Daisy Lowe dons tie-dye tracksuit as she walks out makeup-free for a low-key outing with her dog

Bitcoin price moves sharply as BTC volatility drops to 16-month low – Cointelegraph

Related posts

Overall open interest in Bitcoin options (BTC) fell to $ 2 billion, 13% below the all-time high. While open interest is still heavily focused on the Deribit exchange, the Chicago Mercantile Exchange (CME) also hit $ 300 million.

Simply put, option derivative contracts allow investors to buy protection, either upward (call options) or downward (put options). Even though there are more complex strategies, the mere existence of liquid options markets is a positive indicator.

For example, derivative contracts allow miners to stabilize their income which is tied to the price of a cryptocurrency. Arbitrage and market making firms also use the instruments to hedge their trades. Ultimately, highly liquid markets attract larger participants and increase their efficiency.

Implied volatility is a useful and primary metric that can be taken from option pricing. Whenever traders perceive an increased risk of larger price swings, the indicator will move higher. The reverse occurs during times when the price is flat or if smoother price movements are expected.

The 3-month option contracts involved volatility. Source: Skew

Volatility is commonly referred to as an indicator of fear, but it is primarily a retrospective measure. The 2019 peak seen on the chart above coincided with the high of $ 13,880 on June 26, followed by a sudden drop of $ 1,400. The most recent peak in volatility in March 2020 came after a 50% drop in just 8 hours.