According to The Block, as President-elect Donald Trump prepares for his second inauguration on January 20, the Bitcoin derivatives market is signaling expectations of increased volatility.
Data from the Derive.xyz derivatives exchange shows signs of a bearish medium-term outlook, with Bitcoin put options now accounting for 40% of all open contracts on Derive, rising significantly in the past week.
Bitcoin's implied volatility is also on the rise, underscoring market uncertainty. Over the past week, Bitcoin's 7-day at-the-money IV has risen 3% to 56.5%, while the 30-day IV has increased 1.5% to 57.5%.