Bitcoin’s price volatility has increased, hinting at a return to options-driven market movements. Bitcoin’s implied volatility is nearing 60%, up from below 80% after US Bitcoin ETF approval. Historical data shows spikes before ETF approval in 2024. Analysts link high volatility to market carnage and fear of a prolonged downturn.

Analysts attribute the recent BTC price drop to various factors, including liquidation of leveraged positions, long-term holders selling, and macroeconomic pressures. Bitfinex analysts believe the downturn is temporary, with tactical rebalancing causing the decline, not lack of demand or institutional flight. Bitcoin’s long-term fundamentals remain intact.

Binance CEO Richard Teng notes that Bitcoin’s heightened volatility aligns with other asset classes. Bitcoin plunged below $85,000, sparking concerns of further downside and a potential start to the next bear market. Despite short-term pressures, analysts remain optimistic about Bitcoin’s future growth and institutional adoption.

Read more at Cointelegraph: Bitcoin Price Volatility Inching Toward Pre-ETF Era: Analyst