Tuesday, Jan 17, 2023

“Money doesn't talk, it swears.” – Bob Dylan ||

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MARKETS

Convincing optimism

In relatively quiet markets with the US celebrating Martin Luther King day yesterday, BTC and ETH continued to climb. At time of writing, BTC is holding above $21,000 for the first time since the FTX implosion, and ETH is not far from recovering the $1,570 level.

BTC volatility – both realized and implied – seems to have taken a breather from its sharp rise over the past few days, but is not showing signs of falling back to recent lows. Realized volatility (using the BVOL index as a gauge) is now hovering where it was before the FTX implosion, while implied volatility from options pricing (represented by the DVOL index, chart below) is resting slightly higher, confirming that the market is “waking up”.

(chart via TradingView)