CBOE Analyst Noted Bitcoin Futures Volatility Reduction, Paying Attention to Record Lows in October


Bitcoin futures offered on the Chicago Stock Exchange (CBOE) showed an extremely low level of volatility last month. According to MarketWatch on November 5, the indicators are fundamentally different from global stock markets.

On November 1, Kevin Davitt, senior lecturer at the Institute of Options at Cboe Global Markets, noted that on October 26, the average weekly volatility was only 3% for Bitcoin futures (XBT-CBOE). Over the past year, this is the lowest figure in this field since this product was launched in early October last year.

According to data from November 1 of last year, the average weekly XBT schedule was 15.65%. Davitt noted that from the tax day in April, this figure fell to 10.6%. Monthly data for October of this year show a record low volatility rate, which was only 6.6%.

Based on the specific price data for the last month, DeWitt noted that the highest Bitcoin futures price was $ 6,630, while the lowest figure was $ 6,150. He noted:

“Anyway you carve it, Bitcoin volatility is relatively low, and is declining.”

He also added that the decrease in volatility in the cryptocurrency market is of increasing interest, taking into account the growth of this indicator in the global capital market due to the new policy of the US Federal Reserve and the slowdown in trade in the state.

In addition, Devitt drew attention to the low level of capitalization of the cryptocurrency market last month. In October, the figure ranged from less than 200 billion dollars to just over 220 billion dollars.

Total market capitalization

Source: CoinMarketCap

According to a recent study, a decrease in the bitcoin volatility level significantly influenced the trading volume last month. The trading volume of Bitcoin fell to a mark of 3.2 billion dollars in October.

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