What is the relationship between IV (implied volatility) and IV percentile in the cryptocurrency market?

1 answers

• Kofod JainSep 01, 2021 · 4 years ago
  In the cryptocurrency market, IV and IV percentile are important indicators for assessing market volatility and sentiment. IV measures the expected future price volatility, while IV percentile compares the current IV to its historical values. The relationship between IV and IV percentile is that IV percentile is a measure of how the current IV compares to its historical values. A high IV percentile indicates that the current IV is higher than most of its historical values, suggesting a higher level of market uncertainty. Conversely, a low IV percentile indicates that the current IV is lower than most of its historical values, suggesting a lower level of market uncertainty. Traders can use IV and IV percentile to gauge the market sentiment and make informed decisions about their cryptocurrency investments.
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