Bitcoin Options Market Still Afraid of USDC Volatility

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Bitcoin Options Market Still Afraid of USDC Volatility
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Bitcoin options traders remain wary of volatility in Circle's dollar-pegged stablecoin, analyst said, drawing attention to the implied volatility spread between DeribitExchange and Bybit_Official. Reports godbole17.

its dollar peg, recovering from the Silicon Valley Bank-induced chaos over the weekend that saw its price plummet to $0.90 on major exchanges.

"Whilst USDC has now recovered its peg to trade at $0.99, the [positive] spread of Deribit option- to ByBit option-implied volatility persists," Andrew Melville, research analyst at crypto derivatives analytics firm Block Scholes,"The discrepancy is present across the term structure and is most dramatic at longer tenors [longer duration options].

how options of the same underlying asset exhibit different implied volatilities across different expiration months.

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