Market Anticipates Low Volatility Amid Holiday Season

According to BlockBeats, Greeks.live announced on social media that the U.S. stock market will be closed on Christmas Eve and Christmas Day due to the holiday season. During this period, both institutional and retail investors in Europe and the U.S. typically refrain from trading, a trend expected to continue until after New Year's Day. This Friday, the 26th, marks the annual settlement day, with over 50% of total options positions awaiting expiration. Most institutions have opted to shift their positions in advance. Since last week, the implied volatility (IV) of major expiration dates has noticeably decreased, while the proportion of block trades has increased. With the combined effects of declining volatility, the Christmas trading period, and year-end position shifts, the implied volatility of Bitcoin's major expiration dates has dropped by more than 5% over the past month, with short- to medium-term IV falling by over 10%. Ethereum's IV has decreased even more significantly. These data collectively indicate a subdued market outlook, with consensus pointing to low volatility over the next two weeks. The market is likely to remain calm and may gradually decline in the coming fortnight.