ChainCatcher message, Deribit Asia Pacific Business Head Lin Chen posted on X that the current BTC implied volatility (IV) is 53.43, while the historical volatility is at 45.8. The volatility risk premium (implied volatility - historical volatility) is 7.95, returning to positive territory. Corresponding to major events such as interest rate cuts and the U.S. elections, BTC's IV is not high.

ChainCatcher news, Abra's head of over-the-counter options trading Bohan Jiang stated that the recent macroeconomic downturn has caught the derivatives market off guard, with the Chicago Board Options Exchange's Volatility Index (VIX) soaring. In the past 24 hours, the VIX has surged above 65 points, marking the highest level since the market panic at the onset of the COVID-19 pandemic.Bohan Jiang said, "I expect that the implied volatility in the cryptocurrency market will remain high until macro factors stabilize. Most options market participants were not prepared for the recent macroeconomic recession. As the macro narrative shifts, the cryptocurrency market still tends to trend upward; there is almost no hedging against downside risks."

ChainCatcher news, according to CryptoSlate, the 25 Delta Skew in the Bitcoin options market has been highly volatile over the past few months. The weekly 25 Delta Skew metric on Deribit tracks the difference in implied volatility between 25 Delta put options and 25 Delta call options, and this metric has shown significant fluctuations. Since January, this skew has ranged from a low of around -15% to a high of over 15%, highlighting the changing sentiment of options traders and the market's perception of risk.Recent data shows that the skew has surged sharply due to the current correction in Bitcoin. This volatility often reflects a shift in traders' outlook between bearish and bullish scenarios.It is reported that the 25 Delta Skew refers to the implied volatility difference between put options with a delta of -25% and call options with a delta of 25%, indicating a disparity in market views on implied volatility. The calculation of the 25 Delta Skew is the difference between the implied volatility of 25 delta put options and the implied volatility of 25 delta call options, normalized by the ATM implied volatility. This metric focuses on options contracts that expire in one week.

ChainCatcher news, analysts say that the implied volatility of Bitcoin and Ethereum options (a measure of future price movements) currently indicates that traders expect the market to be relatively calm in the coming weeks.Luuk Strijers stated: "The implied volatility level is 40, and the implied volatility percentile is 52. Both indicators are at moderate levels, showing that the market does not expect a lot of activity."Data shows that since mid-May, the implied volatility of Bitcoin has significantly decreased. Analysts at QCP Capital have also observed the same indicators of market sluggishness, noting that "despite the presence of widespread catalysts, the implied volatility has been absolutely suppressed following the approval of the spot Ethereum ETF."

ChainCatcher news, according to The Block data, the trading volume of Ethereum futures options on the Chicago Mercantile Exchange in May has reached $1.26 billion, a significant increase compared to $615.75 million in April, setting a new monthly trading volume record.In addition, Wintermute stated that due to heightened expectations of significant price fluctuations, the implied volatility of Ethereum (which measures the market's expectation of future volatility over a specific period based on option prices) has seen a significant surge.

ChainCatcher news, analysts indicate that Ethereum options open interest is predominantly in call options, reflecting traders' expectations for ETF trading. Recently, the implied volatility of Ethereum call options has been higher than that of Bitcoin, suggesting that derivatives market participants expect Ethereum prices to rise.QCP Capital analysts added, "The front-end volatility of Ethereum may still be 15-20 vol points higher than that of Bitcoin, and Ethereum's bias may still favor call options. However, a potential breakout in Ethereum prices will have to wait until the S-1 approval becomes clearer."

ChainCatcher news, May 15, Greeks.live macro researcher Adam posted on the X platform that the recently released CPI data has attracted significant attention. Although the results met expectations, the cryptocurrency market still experienced substantial volatility, with Bitcoin rising 4% to $64,000, and the current major pain point at $62,000, as some short-term sellers entered the hedging range.The options market reacted noticeably, with implied volatility (IV) for all major maturities quickly rising to new highs for the month. The recent lackluster market caused major maturity options to drop to new lows since the Spring Festival, making the cost-effectiveness for buyers extremely high. Recently, every event-driven opportunity is worth buying options.Meanwhile, ETH appears slightly weak, with the ETH/BTC exchange rate hitting a new low, suggesting opportunities in cross-asset options trading.

ChainCatcher message, as the U.S. SEC is highly unlikely to approve two spot Ethereum ETF applications, Ethereum options traders are preparing for volatility at the end of the month. May 23 and May 24 are the deadlines for the SEC to decide whether to approve the spot Ethereum ETF applications submitted by VanEck and ArkInvest/21 Shares, respectively.According to Wintermute OTC trader Jake Ostrovskis, the current market believes that the chances of these ETFs being approved before the end of May are only 16%. He added that the implied volatility of Ethereum options may rise before the end of the month, especially around the time the SEC is expected to make a decision on the Ethereum spot ETF.Ostrovskis explained, "There is a slight distortion in the implied volatility term structure of Ethereum. The pricing for May 31 is around 60%, after which the market flattens out, and then rises again from June to the end of the year. This is 8 points higher than the Bitcoin volatility premium, with Bitcoin volatility at about 52%."

ChainCatcher news, according to The Block, analysts say that despite a significant drop in the implied volatility of Bitcoin options, the uncertainty surrounding the future price of Ethereum keeps its options implied volatility at a high level.Data shows that the Bitcoin volatility index has fallen from 72% at the time of the halving to a several-month low of 55%. In contrast, the Ethereum indicator during the same period has decreased from 76% to the current 65%, showing a smaller decline. Bitfinex analysts believe that the SEC will make a decision on two spot ETH ETFs on May 23, which adds additional uncertainty to the Ethereum price, causing its volatility risk premium to decrease less than that of Bitcoin.Additionally, QCP Capital analysts point out that the risk reversal of Ethereum options remains at -4%, with put option prices higher than call option prices, reflecting bearish sentiment among investors. In contrast, the risk reversal for Bitcoin has turned positive, with call options being more expensive than put options, indicating a bullish market.

ChainCatcher news, Deribit Asia Pacific Business Head LinChen posted on platform X, stating that the IV implied volatility of ETH has surged above 80 again, currently at 81.8, indicating that the market believes a storm is coming.

ChainCatcher news, according to Glassnode data, the leverage effect in the Bitcoin futures market is significant. In the past hour, the contract value exceeded $68,000, and the value of liquidated Bitcoin longs has surpassed $220 million. The implied volatility of options has increased from 24% to 55%.