QCP Capital: Bitcoin and Ethereum Volatility Indicator Alerts Market is Entering a Period of Increased Volatility
ChainCatcher message, QCP Capital stated that the Volatility Momentum Indicator (VMI) for Bitcoin and Ethereum triggered an alert this morning, indicating that the market is entering a period of increased volatility. The directionality of this signal is unknown, meaning it does not indicate the direction of price points but suggests that significant price fluctuations may occur in the short term (the chart below shows the implied volatility of BTC at historical VML signals). Historically, shifting from profit-generating strategies to long convexity (buying options) strategies at this time has helped optimize portfolio returns.