Derive： Bitcoin volatility approaches monthly low, may rebound to 60% -70% in the future

According to Derive, a decentralized on chain options platform, the current calm in the Bitcoin (BTC) market may only be a temporary phenomenon, and significant price fluctuations may occur in the future. Derive founder Nick Forster stated that Bitcoin's key volatility indicator is approaching its monthly low, with the current week's average volatility dropping to 49%, compared to 91% at the beginning of the month. However, volatility has mean reversion characteristics and may rebound to the 60% -70% level in February in the future. In addition, potential volatility triggers include changes in the situation in Ukraine or adjustments to cryptocurrency regulatory policies under the Trump administration. The upcoming interest rate decision by the Federal Reserve may also have an impact on the market. Although the market expects 2 to 3 interest rate cuts this year, BlackRock believes that the room for rate cuts may be limited, and sustained inflationary pressures may limit the extent of rate cuts.