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Has the BTC Halving Already Been Priced In? 

Has the BTC Halving Already Been Priced In? 
  • Starting the year off on a high note, Bitcoin saw a price surge up to $7.5k.
  • The BTC halving is set to go down in May.
  • Some analysts are making the prediction that Bitcoin will fight back its loss in previous rallies. 

Starting the year off on a high note, Bitcoin saw a 3.16 per cent price surge up to the $7.5k range and with the halving of the leading cryptocurrency set to go down in May, some analysts are making the prediction that Bitcoin will fight back its loss in previous rallies. 

However, despite whether the Bitcoin halving is priced in or not, there is still going to be some volatility surrounding the date.

Skew markets, took to Twitter recently, stating:

“There have been voices claiming that whether or not the halving is already priced in, we should expect some volatility in the spot price around the upcoming halving date as the market adjusts to the sharp decrease is the natural supply from miners.”

Volatility 

In order to nail down any kind of drastic change in an asset’s volatility, investors typically will consider looking into the asset’s implied ‘volatility term structure’ via the Options market. Despite this, while Bitcoin’s suggested volatility reflects changes in its price, the future of the asset isn’t given away in any way. As per AMB Crypto, this is an indicator that the leading cryptocurrency might have already halved in.

Skew added:

“The BTC options market tells us an interesting story: there is no kink in the implied volatility term structure for the relevant expiry (Jun20). This means the options market does NOT anticipate any increased volatility around that time!”

It will be interesting to see how this situation plays out and where the halving will take Bitcoin. For more news on this and other crypto updates, keep it with CryptoDaily!

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