Record BTC price levels as reflected in the CVX index

CVX has been skyrocketing by 25% to historic peak this Wednesday, from 68 levels on Tuesday to more than 83.

In the same time, BTC has been reaching new heights: rising above $18,000 on Wednesday, to its highest in three years, and its market capitalization has hit an all-time record of $336 billion.

In fact, according to Business Insider article, Bitcoin has closed above $17,000 for only five other days in history.

The Bitcoin’s latest surge began in October after PayPal announced it would allow its users to buy, sell, and hold the token. Crypto bulls said it was only a matter of time before other major firms adopt its use. However, some still seem to think this might just be a bubble, and its price could crash at some point, like in July 2019, where a 30% drop followed a similar-sized rally, and afterwards it took Bitcoin 14 months to regain the $13,850 level.

According to an analysis of BTC options that was presented in Cointelegraph and included a comparison to data from July 2019, it was concluded that option traders were pricing in the same probability of a strong market swing in either direction. This situation has not been the case recently, as the 25% delta skew indicator shows. This could explain the immediate and dramatic increase in CVX, which reflects market expectations on volatility.

Shortly after these events, CVX has decreased back to 75.5, probably a result of the slight decrease in BTC price. It’s interesting to see what will happen next and how the expectations of the market will continue to be reflected in CVX behavior.

For more information and examples on CVX, please refer to the CVX announcement.

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