The post the index that can anticipate the price movements of BTC appeared on BitcoinEthereumNews.com.

There is an index that seems to be able to help identify some movements in the price of Bitcoin in advance.  At the base of this (inverse) correlation, however, there is no clear dynamic, but only the observation that in the past it has already happened several times that a movement in one direction of this index was followed a few days later by a movement in the opposite direction of the price of Bitcoin.  This, for example, also happened this week.  Therefore, monitoring this index does not provide certainty regarding the future movements of the Bitcoin price, but in certain situations, it can give some additional indication. MOVE: the index that can anticipate the price of Bitcoin (BTC) This is the so-called MOVE index, which is the U.S. Bond Market Option Volatility Estimate Index. It is an index that measures daily volatility in the American bond market. This index was originally devised by Merrill Lynch to measure fear in the U.S. bond market.  For the stock market, there is another volatility index, the famous VIX, while for the bond market, there is the MOVE.  In 2019 the Merrill Lynch Option Volatility Estimate became the ICE BofAML U.S. Bond Market Option Volatility Estimate Index, while still retaining the acronym MOVE.  In particular, it measures the volatility on options traded on US Treasury Bonds. It is used as a parameter to monitor the perception of risk and to understand how the sentiment of operators in the US bond market tends to move.  Technically, it tracks the movement of the implied volatility of the returns of the 2, 5, 10, and 30-year US Treasury from the 1-month option prices. What is the purpose of the MOVE index Since the implied volatility corresponds to the cost of insurance, the MOVE also measures the…

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Filed under: News - @ October 12, 2024 7:19 am