BTC options market data shows traders are bracing for "extreme" volatility this week

According to the options market activity data on Deribit tracked by Amberdata, the "Butterfly Index" of the BTC options market, which measures the volatility of out-of-the-money (OTM) 25-delta (🥰 25) calls and puts relative to at-the-money (ATM) options close to the spot price, has risen significantly. The surge in the index indicates that the market is expecting more extreme volatility.
Greg Magadini, head of derivatives at Amberdata, said: "We'll be listening to Trump at the Bitcoin conference in Nashville this week. That could be a potential catalyst for'something's about to happen 'this week. The derivatives market seems to agree with that and we see pricing really supporting the'something's about to happen' narrative."



BlockBeats previously reported that there is news that Trump may announce that BTC will play a more important role in the US financial system. Several industry insiders said that Trump will announce bitcoin as a strategic reserve asset at that time. 10x Research founder Markus Thielen believes that this situation will trigger a parabolic rise in bitcoin prices.