Bitcoin Volatility Index exceeds 100% for the third time in 2022 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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Updated: Nov. 29, 2022 at 3:38 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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.
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Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.