Ethereum Volatility Drops Below Bitcoin’s but ETH Options Are Bearish

Ethereum Volatility Drops Below Bitcoin’s but ETH Options Are Bearish

Gate Trade News Tuesday, June 30, 2020 26 0

Ethereum’s implied volatility dropped below Bitcoin's for the first time ever, but is this a bullish or bearish development?

 

Ether (ETH) options implied volatility, a measure of the expected price swings as per the options markets premium, has dropped below Bitcoin’s (BTC) for the first time ever. 

 

This could signal that investors have given up expectations of a price decoupling, or they simply expect ETH price moves to mirror Bitcoin. 

 

In the case of potential catalysts for significant price moves, implied volatility tends to move up whereas an absence of triggers causes volatility to recede, alongside a diminishing premium on options markets.