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Bitcoin futures’ volatility hit record low

Last month, XBT bitcoin futures product hit record low in volatility (6.6%) on the Chicago Board Options Exchange (CBOE). Earlier this month, bitcoin’s 20-day historical volatility (HV) index marked lower than that of the most popular stocks on Wall Street.

Bitcoin’s low volatility is now relevant for bitcoin futures market as well, as CBOE’s XBT had seen its volatility rate at lowest ever, Kevin Davitt, senior instructor for The Options Institute at CBOE Global Markets reported.

He stated, inter alia:

“Last week, which ended on October 26, saw the least volatility yet with a 3 percent weekly high-to-low range,” he said, “if we look at the weekly range over the course of October, it’s a mere 6.6 percent, which is far and away the lowest monthly average.”

CBOE’s XBT futures product had seen an average weekly volatility of 15.65% since their launch in December 2017, more than double what the market saw in October. Remarkably, even bitcoin’s most volatile week during October saw a lead-month range of just 8%.

Bitcoin’s 20-day historical volatility (HV) index turned out to be lower than that of the most popular stocks on Wall Street, including Amazon’s, Netflix’s and Nvidia’s, as revealed by the recent report by CBOE Global Markets.

As noted by Davitt last month, the HV index for bitcoin proved to be lower than that of Amazon, Netflix, Nvidia and other top Wall Street stocks.

“Perhaps we are witnessing the maturation of a market. It’s far too early to declare this the ‘new normal,’ but the persistent range over the last few weeks may be hinting at a structural shift. Time will tell,” – the expert explained.