It’s fed again, and traders are looking for clues as to how much volatility this important event will cause. According to Volmex’s implicit volatility index, the main tokens were able to see price fluctuations, but nothing normal is expected.
According to the data source TradingView, Volmex’s daily Bitcoin per year is 49% at the time of writing, which is equivalent to the expected 24-hour price of 2.56%.
In other words, Bitcoin (BTC) could swing at $2,470 in either direction. At the time of writing, Bitcoin changed hands for around $96,500.
As the digital asset market is open 24/7, the expected daily volatility is determined by dividing the annual percentage by a square root of 365. In traditional markets, annual rate to daily conversion includes a square root for 252 days.
At the time of writing, Ether (ETH)’s daily volatility per year was 66%, suggesting a 24-hour price swing of 3.45%. Similarly, Volmex’s daily implicit volatility index suggested a 24-hour movement of 4.3% in Solana’s Sol.
Volmex does not publish volatility indexes related to cryptocurrency XRP, focusing on payments. That said, the expected movement of the token may be measured from the implicit forward volatility (IV) derived from the options listed in the Delibit.
According to data source Amberdata, Forward IV on May 8 was 77.98% at press time. This corresponds to the expected daily travel of 4.08%.
The Federal Reserve announced its fee decision at 18:00 UTC, followed by a press conference at 18:30 UTC by Chairman Jerome Powell.
Although central banks are expected to not change fees, commentary on the economic outlook for the background of the trade war and the possibility of interest rate cuts in June could move the market.