The Vols are RingingAug 26, 2021
Implied volatility for near-term BTC options have been trending down for a couple of weeks now. Realized volatility, or actual volatility, has been a lot lower for the same time horizon.
With the options market starting to price in lesser volatility, this could be a signal that the market is in for a period of “chopsolidation,” where BTC just establishes a price range and hovers inside it. But if the short-term downtrend continues, we could see realized volatility pop (since the market is still in a mid-term uptrend), which could potentially cause IV to increase again as investors buy up puts.