Bitfinex analyst: Bitcoin volatility risk premium data shows that future currency price volatility may be lower than expected
According to BlockBeats, on May 8, data tracked by Bitfinex analysts showed that since the Bitcoin blockchain implemented a mining reward halving on April 20, the monthly VRP (volatility risk premium) has plummeted from 15% to 2.5%.
It is reported that the VRP calculation is based on the gap between Volmex's Bitcoin 30-day implied volatility index (BVIV) and the 1-month realized volatility (VBRV). Analysts said: "The sharp narrowing of VRP indicates that market expectations are being readjusted to adapt to a more stable and predictable environment after the halving. The market consensus seems to be that future volatility after the halving may be lower than previously expected. In other words, uncertainty has weakened and market participants expect market conditions to be more predictable."
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