No Man’s Land

May 22, 2023 • 8 Min Read

A Nosedive in Volatility

Equities are not the only asset class undergoing a noticeable decline in volatility. Both Bitcoin and Ethereum are following a similar path. Over the past two months, there has been a significant decrease in the implied volatilities of these blue chip cryptoassets, especially following the fallout from the Silicon Valley Bank (SVB) crisis and the subsequent rally in prices following the Federal Reserve’s intervention.

The sense of stagnation in Ether, with its price hovering around $1,800 for several months, is reflected in its volatility pricing. Currently, Ethereum's one-month implied volatility is at its lowest point in the past year. While Bitcoin's implied volatility hasn't quite reached its one-year low, it is clearly moving in that direction. This has left much of the market feeling like it is stuck in no man's land.

The video in this report is only accessible to members

From a historical standpoint, the realized volatilities of both BTC and ETH are also on a downward trajectory. Although neither metric is currently at an all-time low, the current trend suggests that they may reach that point soon.

This move towards lower volatility in these major assets signals a broader shift in market dynamics.

The video in this report is only accessible to members

Why are markets so quiet?

In short, markets...

Unlock this page with a FREE 30-Day Trial!

*Free trial available only on a monthly plan


Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 3/3

🎁 Unlock 2 extra articles by joining our Community!

You’ve reached your limit of 3 free monthly articles. Please enter your email to unlock 2 more articles.

Already have an account? Sign In

Reports you haven't read