Volmex Research said in a newly released paper that regularly released macroeconomic announcements significantly affect Bitcoin’s (BTC) realized and implied volatility in the cryptocurrency market. Regression analysis of BTC price ranges and volatility levels found that these events continue to cause volatility in both spot and options markets.
The study also noted that CPI and Fed decisions had the greatest impact on volatility levels, confirming that these events are key drivers of uncertainty resolution. CPI typically results in sustained swings of up to 24 hours, while the impact of Fed decisions dissipates more quickly, especially on measures of implied volatility.
In addition, robustness checks using multiple time windows and incorporating Ethereum (ETH) prices further validate the findings. This finding provides traders and market participants with a basis for developing strategies to deal with the price volatility triggered by these important macroeconomic announcements, especially in the cryptocurrency derivatives market.