Market Volatility Increases as Crypto Stocks Decline

According to BlockBeats, Greeks.live macro researcher Adam recently tweeted about the current market downturn. He noted that Bitcoin's short to medium-term implied volatility (IV) has surged to 40%, while Ethereum's short-term IV has risen to 70%. This increase in IV indicates heightened market expectations for volatility this week. The decline in U.S. crypto-related stocks, particularly those in the MicroStrategy series, has been a catalyst for this downturn. Historically, September has been a month of weaker capital flows, but the final quarter is expected to see more robust funding. Additionally, there has been a rapid increase in the volume of bearish options trading today, with a total of $1.17 billion in transactions, accounting for 30% of the day's total trading volume. This reflects a defensive sentiment dominating the market.