Matrixport has released a report noting that Bitcoin’s 30-day realized volatility has recently surged to 62%, surpassing its long-term average of 58%. Historical data shows that when realized volatility exceeds 70%, this volatility is typically short-lived, presenting profit opportunities for traders selling implied volatility at these high levels. Conversely, when realized volatility falls below 30%, buying volatility often offers a favorable risk-reward ratio.
Since June 21, Bitcoin has declined by 12%, following a familiar summer pattern where cryptocurrencies tend to drop, followed by increased volatility. This trend coincides with several upcoming events that could significantly impact Bitcoin’s market dynamics.
Additionally, key events in September may influence the Bitcoin market, including the U.S. jobs report on September 6, the presidential debate on September 10, and the Federal Reserve’s interest rate decision on September 18. These events are expected to have a notable impact on market sentiment.
