In June 2022, following the Terra collapse, the demand for puts rose while implied volatility collapsed, the same as in the recent crypto bear market after the fall of FTX. The performance of the options market and implied volatility both reflected a strong correlation to the collapse of the Terra blockchain. These elements can provide…
The Bitcoin inflation rate fell from 50% in 2011 to 4% in 2020 prior to the halving and now stands at 1.7%, a figure way below the U.S. Federal Reserve’s monetary inflation rate target of 2%. While the rate demonstrates Bitcoin’s rapid and mainstream adoption, the digital currency’s fundamentals have remained unaffected by 2022’s negative…