The crypto market rebounded slightly. Is the market warming up and the bull market returning quickly?

With the arrival of the new year, the long-dormant crypto market rebounded slightly, showing signs of a short-term recovery. Data shows that the total transaction volume of the crypto market on January 3 was US$29.72 billion. The single-day increase was 43.6%. The Bitcoin Volatility Index rebounded to 52.08 yesterday, a single-day increase of 3.87% compared to January 2 (50.14). The index fell to 49.67 on January 1, 2023, a new low since April 2019.

The market is recovering and the price of coins is rising

The recovery of mainstream tokens seems to have also boosted the altcoin sector. Several altcoins, including SRM and SOL, have seen significant increases. Serum (SRM) rose to $0.17, up 18.9% in 24 hours; Solana (SOL) rose for two consecutive days, briefly breaking through $14, up nearly 25% in 24 hours.

"Bitcoin Volatility Index rebounded to 52.08 yesterday, a single-day increase of 3.87%"

The BitVol (Bitcoin volatility) index launched by Bitcoin options trading platform LedgerX rebounded to 52.08 yesterday, a single-day increase of 3.87% compared to January 2 (50.14). The index fell to 49.67 on January 1, 2023, a new low since April 2019. It is reported that the BitVol index measures the 30-day expected implied volatility derived from the price of tradable Bitcoin options.

BlockBeats Note: Implied volatility refers to the volatility implied by the actual option price. It is the volatility inferred by substituting the actual option price and other parameters except volatility into the BS option pricing formula. The actual price of an option is formed by the competition of many option traders. Therefore, implied volatility represents the market participants' views and expectations on the future of the market, and is therefore regarded as the closest to the actual volatility at that time.

Although the crypto market showed signs of a brief recovery, the current market panic index is 29 and is still in a "panic" state.

The aftermath of the FTX incident has not yet ended. FTX founder SBF pleaded not guilty to eight criminal charges related to the sudden collapse of FTX in the New York Federal Court. The U.S. District Court set the trial date for October 2, 2023. DCG is still in deep debt, and the loan issue with Gemini has not been resolved. There are still many uncertainties in the crypto market, and the global economic level has not yet recovered. It is still difficult for the crypto community to regain confidence in the short term. Hereby remind users to pay attention to risks and do not operate blindly.