Trading CVI can be very profitable if you can predict volatility as the Crypto Volatility Index is a leading market indicator

because it tells us the market’s expectation of volatility, rather than current or historic market levels

by tracking the price of out-the-money $BTC, $ETH, etc options with expiration dates near 30 days.

CVI value of 60 indicates that the market anticipates an annualized movement of 60%.

This translates to ~17.3% over the next 30 days. In practical terms, this means the market expects the prices of BTC or ETH to either rise by 17% or fall by 17%.

As an example, with $BTC currently at around 43K, this implies that the market foresees BTC's price ranging between $35k and $50k.

With the upcoming ETF approval, this projection seems quite conservative, and there's an excellent opportunity available for those who share this perspective.

Additionally, CVI serves as an excellent hedging mechanism, particularly when the market's direction is unclear.

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