Bitcoin (BTC) has recently shown low volatility, but according to Derive's report, this might change soon.
Current Volatility Situation
Since March 12, BTC has been trading between $80,000 and $85,000 after a sharp decline from its all-time high of $100,000. The price drop was attributed to President Donald Trump's new tariffs and the lack of purchases for the Strategic Bitcoin Reserve. Despite the current period of low volatility, Derive founder Nick Forster suggests this could be a temporary lull before significant price movements.
What Could Trigger the Next Move?
Forster emphasized that volatility does not predict price direction, meaning BTC could see major swings up or down. Factors that could lead to a resurgence in this volatility include: geopolitical uncertainties such as developments in Ukraine, regulatory changes under the Trump administration, and the Federal Reserve's policy decision to be announced on Wednesday. The Fed is expected to hold interest rates steady, with traders pricing in two to three rate cuts this year. A more dovish stance than expected could fuel Bitcoin bulls while continued equity market declines might push prices lower.
Market Impact from Derive
Derive, an AI-powered blockchain options platform, has seen significant activity with approximately $100 million in total value locked (TVL) and $15 billion in cumulative trading volume. Given the deep market insights, traders are closely monitoring whether the projected volatility resurgence will propel BTC to new highs or trigger another sell-off.
According to Derive, Bitcoin might face significant price swings depending on several factors, including geopolitical events and regulatory decisions.
