Bitcoin Trades Above $90,000 Amid Declining Volatility and Mixed Crypto Market Signals
Bitcoin is trading above $90,000, around $92,212.05, as its implied volatility declines towards the end of the year. The volatility gauge BVIV has fallen to 45.10% annualized, the lowest since November 10, dropping from 65% on November 21.
Altcoins such as ZEC and AAVE have gained over 9% in the past 24 hours, while HYPE, TAO, and SUI rose over 5%. In contrast, KAS and TRX dipped over 1%. Analysts expect continued high-volatility fluctuations in Bitcoin, with thin liquidity and mixed ETF flows indicating a market searching for direction.
Cumulative open interest in Bitcoin and Ethereum futures and perpetual contracts has fallen by 36% and 35% over the past three months respectively. Other altcoins like SOL decreased by 53%, XRP by 59.5%, and DOGE by 70%, as risk offloading is concentrated on memecoins.
On the broader market front, gold has resumed its rally while the dollar weakened to multiweek lows following the recent Federal Reserve meeting.
Upcoming notable events include the launch of the EstateX platform on December 12, Stripe enabling dollar-settled stablecoin payments (supporting USDC on Ethereum, Solana, Polygon, Base; USDP and USDG on Ethereum), and the Federal Reserve beginning reserve-management purchases of Treasuries as per the December 12 implementation note.
