{"id":68455,"date":"2022-10-12T12:21:00","date_gmt":"2022-10-12T09:21:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=68455"},"modified":"2025-09-07T14:11:16","modified_gmt":"2025-09-07T11:11:16","slug":"experts-point-to-potential-spike-in-cryptocurrency-market-volatility","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/experts-point-to-potential-spike-in-cryptocurrency-market-volatility\/","title":{"rendered":"Experts point to potential spike in cryptocurrency market volatility"},"content":{"rendered":"

The ratio of open interest (OI) in Bitcoin and Ethereum futures and perpetual contracts to their market capitalisation reached a record. Against the backdrop of the current consolidation, analysts at Arcane Research said this could signal a sharp intensification of volatility.<\/p>\n

OI to market capitalization in Bitcoin reached 3.21%, and in Ethereum 4.24%.<\/p>\n

\n
\"Experts
Dynamics of open interest of Bitcoin and Ethereum (futures and perpetual contracts combined) to their market capitalisation. Data: Arcane Research.<\/figcaption><\/figure>\n<\/div>\n

Analysts noted that this ratio remains near peaks despite The Merge<\/a>. In anticipation of this event, many players hedged or opened directional positions.<\/p>\n

To mitigate potential \u201cbrutal\u201d deleveraging, experts proposed straddle strategies<\/a>. They allow bets on a structural shift in volatility.<\/p>\n

The implied volatility parameter in Bitcoin options fell to multi-month lows.<\/p>\n

\n
\"Bitcoin
Dynamics of monthly and three-month implied volatility in Bitcoin options. Data: Arcane Research.<\/figcaption><\/figure>\n<\/div>\n

Analysts at Glassnode did not rule out that the current phase could last several more months.<\/p>\n

Earlier, former manager of the hedge fund Cramer & Co. and host of Mad Money on CNBC, Jim Cramer, said that tightening monetary policy would lead to the <\/a> \u201cwashout\u201d of speculative instruments such as digital assets<\/a>.<\/p>\n

Read ForkLog bitcoin news in our Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"

The ratio of open interest (OI) in Bitcoin and Ethereum futures and perpetual contracts to their market capitalisation reached a record. Against the backdrop of the current consolidation, this could be a prelude to a sharp increase in volatility.<\/p>\n","protected":false},"author":1,"featured_media":68456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1874,18,1168],"class_list":["post-68455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-arcane-research","tag-bitcoin","tag-crypto-derivatives"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=68455"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68455\/revisions"}],"predecessor-version":[{"id":68457,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68455\/revisions\/68457"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/68456"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=68455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=68455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=68455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}