"Analyzing the Impact of Bitcoin Halving on Volatility and Momentum"

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Source: CoinDesk
"Analyzing the Impact of Bitcoin Halving on Volatility and Momentum"
Photo: CoinDesk
TL;DR Summary

Bitcoin's upcoming reward halving is not expected to cause a significant increase in volatility, despite an uptick in implied volatility leading up to the event. Greg Magadini of Amberdata believes that the highly predictable nature of the halving makes paying a volatility premium unworthy. While traders typically bet on volatility ahead of uncertain events, the impact of Bitcoin's halving on its price and miners has been well-documented, with historical rallies following previous halvings. The 30-day implied volatility for Bitcoin has increased, but Magadini suggests that options implied volatility is overpricing the event.

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