Bitcoin Volatility Surpasses VIX, Suggesting Potential Trading Opportunities

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Derived from BitJie, the article highlights that Bitcoin's implied volatility, as measured by Volmex's BVIV index, is outpacing the S&P 500's VIX index. The widening BVIV-VIX spread suggests that Bitcoin's volatility is expected to exceed that of the stock market. Volmex founder Cole Kennally explained that this divergence often signals higher anticipated volatility in crypto markets, which react faster to liquidity and macroeconomic factors. Bitcoin recently broke out of a multi-month consolidation range and a descending trendline, indicating potential for increased volatility relative to the S&P 500. Traders may consider cross-asset volatility trades based on this divergence, though such strategies are capital-intensive and typically suited for institutional investors.

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