Analysis: Institutions are overly optimistic about the crypto market, and history suggests that the bottom has not yet arrived.

BTC5,78%

PANews February 10 News, Greeks.live macro researcher Adam posted on the X platform that the crypto market has stabilized somewhat, with a significant decline in the implied volatility (IV) of major maturities. However, the actual volatility (RV) over the past week remains relatively high, resulting in a record average decrease of 45% in the one-week VRP. Specifically, the data shows a drop from last week’s +20% level to the current -25% level, a rare phenomenon. This indicates that the market is rapidly reducing its volatility expectations, and the pace may be too fast, as Bitcoin’s volatility tends to be highly clustered. Institutions are somewhat overly optimistic about the market, and this recklessness could be very passive if a second wave of decline occurs. The irrationality in the options market has clearly increased, and institutions have been confused by recent market movements. Historically, such situations often indicate that the bottom has not yet arrived.

View Original
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Bitcoin Undervalued vs Gold: Analyst Signals Rally Ahead

Bitcoin (CRYPTO: BTC) is widely cited as undervalued when measured against traditional stores of value like gold and the broad money supply, according to Samson Mow, the chief executive of Bitcoin technology firm Jan3. In a Saturday post on X, Mow argued that BTC sits roughly 24% to 66% below its tr

CryptoBreaking1h ago

Bitcoin Treasury Firm ProCap Adds $31 Million in BTC as Stock Buybacks Grow

ProCap Financial, led by Anthony Pompliano, acquired $31 million in Bitcoin and raised $2.2 million through share buybacks to close the gap between its market cap and net asset value, as shares of BRR increased by 7% in one day.

Decrypt1h ago

Bitcoin Holds $66,000 as Market Braces for March Rebound

Tom Lee predicts a March rebound for crypto and US stocks as Bitcoin stabilizes at $66K amid geopolitical tensions. Despite market volatility and rising oil prices, he expects economic growth to support recovery in risk assets.

CryptoBreaking1h ago

Michael Saylor Buys 3,015 BTC as War Fears Shake Markets

_Michael Saylor’s Strategy buys 3,015 BTC for $204M, extending its streak to 10 weeks as Bitcoin holds above $65K amid U.S.-Iran tensions._ Michael Saylor Buys 3,015 BTC as War Fears Shake Markets, as Strategy added more Bitcoin while global tensions weighed on risk assets. The purchase came a

LiveBTCNews1h ago
Comment
0/400
SiYuvip
· 02-10 01:04
New Year Wealth Explosion 🤑
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)