Bitfinex Alpha #56 | Historical VS Implied Volatility

The #cryptomarket has been experiencing a period of low #impliedvolatility since the #FTX decline and subsequent volatility spike in November. Seven-day implied #volatility has decreased to under 40 percent after peaking at 76.23 percent in March. While implied volatility has not shown any signs of stabilisation, when contrasting this with #realisedvolatility, we get better insights. - **Historical Volatility** or **realised volatility** refers to the actual volatility demonstrated by an asset in the past over a specific period, while - **Implied volatility** is a metric that captures the market's expectation of future volatility. It's not based on historical price changes of the asset itself but rather derived from the prices of options on that asset. Check the [Bitfinex Alpha Issue #56](https://blog.bitfinex.com/wp-content/uploads/2023/05/Bitfinex-Alpha-56.pdf) to find out what info about market sentiment and expectations the relative values of HV and IV can provide and what events have the potential to stimulate volatility organically. Subscribe to our weekly newsletter [here](https://blog.bitfinex.com/bitfinexalpha/). #BitfinexAlpha #cryptomarketanalysis #cryptomarketanalysis