Derived: Bitcoin volatility near monthly low, likely to rebound to 60% -70% in the future

On March 18th, according to the analysis of the decentralized on-chain options platform Derive, the current calm in the Bitcoin (BTC) market may only be a short-term phenomenon, and there may be significant price fluctuations in the future. Nick Forster, founder of Derive, said that the key volatility indicator of Bitcoin is close to the monthly low, and the average volatility has dropped to 49% during the current week, compared with 91% at the beginning of the month. Despite this, volatility has a mean reversion characteristic and may rebound to the 60% -70% level in February in the future.
In addition, potential volatility triggers include changes in the situation in Ukraine or changes in crypto regulatory policy under the Trump administration. The Federal Reserve's upcoming interest rate decision could also have an impact on the market. While the market expects two to three rate cuts this year, BlackRock believes that the room for rate cuts may be limited, and continued inflationary pressures may limit the extent of rate cuts.