Bitcoin Events This Week Are Poised to Influence the Broader Market, with a Heightened Focus on Economic Data and Volatility Metrics

The upcoming Consumer Price Index (CPI) release, Jerome Powell's speech at Jackson Hole, and rising Bitcoin 30-day volatility are central to the narrative.

Bitcoin Events This Week: CPI, Powell’s Speech, Rising Volatility to Sway Market

Key Highlights

The Consumer Price Index (CPI) data release on Aug. 14 will influence Federal Reserve policy, which could impact Bitcoin’s market dynamics.

Jerome Powell’s speech at the Jackson Hole conference will offer insights into the central bank’s future direction, affecting Bitcoin’s price movements.

Bitcoin’s 30-day volatility has surged to 3.24 in August, indicating more pronounced price swings.

After a period of relative calm, Bitcoin’s volatility is once again on the rise. The 30-day volatility index, which measures the annualized standard deviation of daily price returns over the past 30 days, has surged from below 1.5 in July to 3.24 in August. This indicates that the cryptocurrency’s price has been fluctuating more sharply in recent weeks.

Adding to the volatility concerns, the Bitcoin Volmex Implied Volatility Index spiked to 97.14 on Aug. 5, coinciding with Bitcoin’s brief dip to $49,813, as reported by CoinMarketCap. This was the highest level of volatility seen since November 2022, when cryptocurrency exchange FTX collapsed.

Drawing a parallel with the VIX index, which tracks volatility in traditional financial markets, the current trend in Bitcoin’s volatility signals a market grappling with uncertainty. High volatility often deters long-term investors, who prefer stability, and this trend could imply further turbulence in the coming days and weeks.

Further supporting the market’s unpredictable nature, recent data from CoinGlass shows the 24-hour put-to-call volume ratio, which measures the demand for put (sell) versus call (buy) options, indicates a slightly bullish sentiment.

The ratio stands at 53.68% calls and 46.32% puts, resulting in a put-to-call ratio of 1.13.

However, market analyst Mac10 highlights that the VIX has now dipped below its pre-BOJ crash level, while the overall market remains lower than before. This observation adds another layer of complexity to the market analysis.

Meanwhile, Caleb Franzen, another market analyst, points out a notable shift in market volatility. He explains that the CBOE Market Volatility Index (VIX) experienced a rare drop from above 40 to below 20, a pattern seen only nine times since the 1990s. This change indicates a period of uncertainty, which could have implications for Bitcoin’s volatility.

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