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James Van Straten reports a sharp collapse in implied volatility for BTC. He notes that traders who bought put options as hedges or were positioned for heightened volatility due to concerns over war involving Iran now appear to require less protection.
According to Van Straten, the move higher in BTC may be driven by this shift in market sentiment.
Van Straten previously reported that Bitcoin traded above its 128DMA, True Market Mean, and STH Cost Basis, marking a change from prior levels in 2022. He also reviewed how Strategy executed a tax harvest sale and buyback in December 2022 that led to a net gain of 106 BTC. These earlier observations provide further context to current developments in BTC volatility.