Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has enabled volatility indices trading on Bybit Advanced Earn with the integration of the Bitcoin Volmex Implied Volatility Index (BVIV) and Ethereum Volmex Implied Volatility Index (EVIV). Starting now, Bybit users can trade on market sentiment and volatility trends of crypto’s golden pair of blue-chip assets—BTC and ETH.
The advanced volatility indices by Volmex, the leader in crypto volatility indices and other novel crypto indices, allow traders to seize opportunities based on the market volatility of BTC and ETH. Measuring implied volatility in the crypto options market, BVIV and EVIV reflect the market’s 30-day forward-looking volatility expectations of BTC and ETH derived from option prices across leading cryptocurrency exchanges. This real-time data transforms how traders can approach market timing and build volatility-based trading strategies.
Combining Bybit’s powerful trading suite and BVIV and EVIV’s institutional-grade insights, traders may formulate effective and personalized trading strategies:
- High Volatility Readings – Short Volatility Opportunities: When BVIV and EVIV show elevated levels, indicating heightened market tension and expectations of large price swings, savvy traders can implement short volatility strategies. As market risk expectations ease and volatility premiums shrink, strategies such as Dual Asset products allow traders to lock in high premiums, while Discount Buy strategies enable asset acquisition at lower effective prices.
- Low Volatility Environments – Long Volatility Setups: Conversely, when indices display lower values indicating calmer market sentiment, they signal growing expectations for future market swings. This presents opportunities for long volatility strategies including Double-Win products that generate profits from price movement in either direction, and Smart Leverage options that amplify returns when market trends become clear.
Bringing Institutional-Grade Volatility Analysis to Retail Traders
Bybit Advanced Earn is dedicated to empowering traders with advanced market intelligence and tools by bringing Volmex’s sophisticated and market-tested volatility indicators. Backed by Volmex, the indices match BVIV and EVIV to the corresponding structured products based on real-time market signals, based on TradingView and CoinMarketCap data.
The BVIV and EVIV indices represent another step forward in democratizing professional trading tools. Similar to the VIX in traditional finance and the widely-followed Crypto Fear & Greed Index, the indices provide traders with instant updates on market sentiment and volatility expectations.
Bybit users may explore the new feature on Bybit Advanced Earn to view live data, track volatility trends, and access tailored recommendations. Terms and conditions and eligibility requirements apply. Investment comes with risk and trading strategy examples are not intended as advice. Users are advised to conduct their own research.
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