Data: Bitcoin has reduced its short-term implied volatility to 25 per cent

On 17 August, BIT Official released a daily graph and graph analysis indicating that the seven-day bitcoin implied volatility had dropped to a 30 per cent threshold, to 25 per cent, near historical lows, similar to the low volatility of the summer of 2023. In an environment of relatively low options prices, investors are provided with an opportunity to potentially rebound with lower capital costs and a limited downside risk configuration. A viable “replacement strategy” is to sell part of the bitcoin spot and to replace that part of the warehouse with an increase in price differentials or a direct buy-in of an increase option, thus preserving the increase in openings. For the parts replaced by options, if bitcoin continues to decline, the maximum loss is mainly limited to the payment of options rights, while the funds released from the sale can still be used to gain; if bitcoin rebounds, the options value increases, allowing investors to participate in the rise as the trend becomes stronger。