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News Explorer — Bitcoin Volatility Risk Premium Indicates Calm Markets Could Be on the Horizon

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May 8, 11:08 am
Coindesk

Bitcoin Volatility Risk Premium Indicates Calm Markets Could Be on the Horizon

The volatility risk premium (VRP) is indicating a low volatility market environment ahead, which is seen as positive by long-term investors. The VRP reflects the tendency for implied volatility to exceed realized volatility over time, representing the premium options sellers demand for future uncertainty and price volatility. The narrowing of the VRP suggests a more stable and predictable market post-halving, with market participants anticipating less volatility than previously expected.

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