Implied Volatility Continues to Trend DownJan 10, 2022
Implied Volatility has compressed over the last couple of months, and it’s continuing to do so going into 2022. As the market seems to be sustaining its trend lower, this is not all that surprising.
The one-month ATM implied volatility of both BTC and ETH shows a spike on Jan. 6 after the sharp sell-off. However, IV continued to trend down in the days after as nothing had meaningfully changed. Price continues to move gradually in the direction of the current trend.