The U. S. Chicago Board Options Exchange (CBOE) has hit record low levels of volatility in their Bitcoin futures contracts recently, the exact opposite as the global equity markets, which is experiencing a heavy volatile turn.
Kevin Davitt, the senior instructor of the Options Institute at CBOE Global Markets has affirmed last week that the average volatility in October was 3 percent lower than its lowest level, which was hailed as a new era of stability. Davitt noted that the numbers continue to be on record low levels on the monthly chart.
This, he believes, is a proof that the levels of volatility are slowing dripping away, something that could be very important for the future of the market. This, he believes, is even more interesting for the market than the backdrop of escalating global equity volatility which was rocketed by the trade war made by the U. S. and China.
However, as the volatility is down, so are the trade volumes of Bitcoin futures. The volume has dropped from $4.2 billion to $3.2 billion USD in October 7. Some of the 24 percent fall has been regained in the recent weeks but not all of it.
Despite all this, low levels of volatility are very good for traders. They represent that the speculation is slowly moving away from the market, which is a very healthy sign.