Bitcoin traders are preparing for a period of increased volatility in the market, according to the latest Bitfinex Alpha report. Last week, the asset experienced a sudden plunge towards the $25,000 mark, resulting in over $1 billion in futures liquidations.On-chain data analyzed by researchers at crypto exchange Bitfinex showed a surge and flatline in implied and historical volatility metrics, suggesting that traders have adjusted their strategies in preparation for impending volatility over the next month at least.The downward move was followed by a major open interest wipeout, considered one of the largest in the asset’s history. Roughly $3 billion in open interest was obliterated within a few hours after the crash.Implied volatility metrics are outpacing historical metrics, indicating that traders foresee wilder price swings ahead. This suggests that the market is accepting the elevated volatility, hinting that traders have adjusted their strategies to this “new normal” of heightened price fluctuations.

Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	10
People	None
Currencies	Bitcoin, Ethereum
Securities	None