The correlation between bitcoin (BTC) and its implied volatility, which refers to expectations for price turbulence over a specific period, has turned negative again for the first time since May, indicating investor concerns about moves to the downside.
The chart of the day is brought to you by crypto dot com. The world's fastest growing crypto app. Let's take a look at the chart of the day. The correlation between Bitcoin and its implied volatility which refers to expectations for price turbulence over a specific period has turned negative again for the first time since May. This indicates investor concerns about moves to the downside are increasing. Some seem worried that the looming $3 billion FX liquidation along with continued monetary tightening by the fed will drive crypto prices lower. This bellow data chart shows the 60 day trailing correlation between Bitcoin's price and implied volatility flipped negative a week ago which suggests expectations of and positioning for a potential FTX induced aversion to risk. Meanwhile several leading indicators have warned of an inflation rebound in the coming months which could keep the fed from cutting interest rates and injecting liquidity into the market anytime soon. Bitcoin is currently trading just over $26,000. That's it for today's chart of the day. I'm Jen Senai. We'll see you next time to unpack more of the data behind top news stories