TechFlow reports that on March 21, Adam, a macro analyst at Greeks.live, noted relatively dull trading activity in the crypto market this week. The total options expiry volume has dropped nearly by half, and short-term implied volatility has clearly declined. Medium- to short-term Bitcoin volatility has fallen below 50% across the board, while ETH's medium- to short-term volatility has retreated to around 60%.
Cryptocurrencies are currently in a state of free-floating consolidation, with investor sentiment turning sluggish. As the quarterly settlement approaches, large holders are generally adopting conservative strategies. Options market-making institutions have again increased their selling intensity, tightening implied volatility, and betting that the market will continue to trade sideways in the near term.
