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Bitcoin’s volatility curve saw a sharp swing in April. Realized volatility measures the actual day-to-day variability in Bitcoin’s price over a set window instead of the market’s expectations. It is the annualized standard deviation of daily logarithmic returns, so it shows how turbulent trading has been. This lets analysts benchmark option prices against recorded moves, flags regime shifts earlier than price trends, and helps judge whether implied premiums or leverage levels look stretched.
One-week realized volatility printed 94 % on April 12, the highest reading since Jan. 10, 2023. That spike coincided with a $3,124 intraday drop to $82,747 and a close at $85,270. Eight days later, the same gauge fell to 16 % as the price settled near $85,000 after a narrow $1,479 range. The market saw only one faster weekly 50-point contraction since October 2022.
Activity picked up again on April 23, as Bitcoin gained $2,785 intraday and closed at $93,715, pushing one-week realized volatility back to 54%. Greeks.live order-book snapshots show Deribit open interest at the $95,000 call strike rising to 13,000 contracts from 3,920 earlier that day, an extra $160 million notional, and the largest one-day build since spot ETFs launched in January. The front-month put-call ratio slid to 0.41, confirming traders were chasing upside rather than hedging exposure.
Two-week realized volatility eased in steps: 71% on April 12, 59% on April 20, 54% on April 23, and 40% on April 30. Meanwhile, one- and three-month realized held at 56%, while the six-month realized hit 54%. The flat medium-term profile means day-to-day swings calm quickly, yet traders with longer horizons still price mid-50% moves.
A 16% short leg against roughly 55% one-month implied leaves dealers collecting about 0.8 volatility points of theta per day. With realized this low, gamma risk is limited and market makers can hedge by selling spot into rallies. Upside usually pauses unless a fresh catalyst forces them to rebalance, which happened briefly on April 23 when ETF creations spiked.
Price action in the final week of April illustrates the carry trade. From April 25 to April 30, Bitcoin’s intraday range averaged about $1,900, one-week realized stayed at 16%, and one-month implied settled at 55%. Binance funding averaged 0.0066% per eight-hour window versus 0.039% on April 12. Liquidations fell to $78 million on April 30 from $485 million on April 12.
Six-month realized sitting at 54%, the same level as Jan. 1, shows the market still expects large swings heading into the Federal Reserve’s summer meetings and the US election. April, therefore, depicts a market willing to drift higher on steady ETF demand but quick to throttle activity when momentum fades.
Volatility spikes come in short bursts tied to large cash prints and fade faster than they did in 2024. That pattern suits carry strategies yet builds latent risk: the longer one-week volatility hovers near 15%, the sharper the reset once the next impulse hits.
The post Bitcoin short term realized volatility drops to 16% after early April spike appeared first on CryptoSlate.
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