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Bitcoin Volatility Index exceeds 100% for the third time in 2022
Bitcoin volatility was lingering at all-time lows before the FTX collapse.
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Cover art/illustration via CryptoSlate. Image includes combined content which may include the use of AI tools.
Bitcoin (BTC) volatility index peaked over 100% for only the third time since the beginning of the year, according to CryptoSlate's analysis of Glassnode data.
The BTC Volatility Index (BVIN)is a metric that reflects the implied volatility index and represents the fair value of a BTC variance swap. It is often preferred to use as a settlement price for BTC volatility futures.
The chart above demonstrates the BVIN index since the end of 2021 and shows that it exceeded 100% on three occasions in February, July, and November.
BTC volatility has been lingering at its all time-lows before the FTX collapse. It became so stagnant that the British Pound's volatility exceeded that of BTC.
However, the FTX fallout has hit BTC harder than the Terra-LUNA collapse that took place in May. BTC fell as much as 75% from its all-time high.
The last time such a movement was recorded was during the 2014-2015 bear market, where BTC fell 85% from its all-time high.
