% 1.84
BTC Dominance:
% 0.09
Market Cap:
$2.13 T
% 0.20
Fear & Greed:
25 / 100
$ 58.448
BTC Dominance:
% 53.3
Market Cap:
$2.13 T

Bitcoin Volatility Surges Ahead of Halving, Outpacing Ether


Bitcoin (BTC) is experiencing a surge in volatility, surpassing Ether (ETH) in recent weeks. This trend contradicts the usual perception of Bitcoin as a more stable asset compared to other cryptocurrencies.

Data Reveals Rising Bitcoin Volatility

According to Kaiko, a Paris-based cryptocurrency data provider, Bitcoin’s annualized 30-day historical volatility reached nearly 60% late last week. This marks a significant increase compared to Ether’s 30-day volatility, creating the highest spread between the two leading cryptos in at least a year.

Factors Contributing to Bitcoin’s Volatility

Several factors are believed to be driving Bitcoin’s increased volatility:

Spot Bitcoin ETFs: The recent approval of spot Bitcoin ETFs by the SEC has shifted investor focus towards these instruments. Net inflows into these ETFs are contributing to upward price volatility for Bitcoin and the broader crypto market.

Dwindling Ether ETF Hopes: The diminishing possibility of an ETH ETF being approved by the SEC before May is dampening enthusiasm among Ether traders. This lack of a similar investment vehicle for Ether may be contributing to its relatively lower volatility.

Approaching Bitcoin Halving: The upcoming Bitcoin halving event, scheduled for April 21st, is another potential factor influencing volatility. This quadrennial event reduces the number of new Bitcoins created per block by 50%, potentially impacting supply and demand dynamics.
Bullish Sentiment and Potential Pullback

Historically, Bitcoin price rallies have followed halving events. However, this time, Bitcoin has already surpassed its previous bull market peak of around $69,000 weeks before the halving. This situation raises concerns about a potential “sell-the-news” pullback after the event, as suggested by Greg Magadini, director of derivatives at Amberdata.

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Options Market Reflects Increased Volatility

The options market for Bitcoin is also reflecting heightened volatility expectations. Implied volatility (IV), a measure of expected future price fluctuations, shows a steep contango leading up to the April 26th expiry. This suggests market participants anticipate increased volatility for Bitcoin as the halving approaches.

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