BlockBeats News, July 20th. Cryptocurrency analyst Murphy pointed out that the Bitcoin options implied volatility (IV) is currently extremely low, with 1-week IV at 33% and 1-month IV at 34%, both below the historical range of 40%, indicating a potential upcoming "significant volatility" in the market.

Murphy stated that there have been two similar occurrences in the past year. After the IV dropped below 40% in early January, BTC fell from $97,000 to $62,000 within 15 days. At the end of April, after the IV dropped below 40%, BTC dropped from $82,000 to $60,000 within 14 days. After June 15th, BTC dropped from $66,000 to $58,000.

Murphy explained that the low IV is due to market consensus, the accumulation of volatility arbitrage funds, and market makers' short gamma mechanism, all amplifying the impact of unexpected events. He reminded contract traders to be prepared.