Huobi Ventures Weekly Report #35

Huobi Ventures Weekly Insights

Insight provided by Ian Wu of Huobi Ventures

Cryptocurrency market cannot ignore the volatility.

Compared with the traditional finance market, some hedge funds prefer the crypto market for two reasons: First, 24 hours opening offers more trading opportunities and the second is high volatility that brings more exposure without leverage.

What is volatility?

It is the degree of variation of a trading price.(https://en.wikipedia.org/wiki/Volatility_(finance))

Bitcoin Implied Volatility data:

(From Skew)

The chart above shows 6 months of ATM volatility averaging approximately 80% over a five-year period and from 2022 the volatility fell below 80% showing a downward trend, which means that from 2022 the volatility was much lower than the average for these years. If you are familiar with volatility neutral strategy, it is highly likely that long volatility will revert back to average in the future.

Let me introduce Volmex Finance, the decentralized volatility trading platform based on Ethereum. We are bullish on this innovation and delighted to be an investor in Volmex Finance.

About Huobi Ventures

Huobi Ventures is focused on growing its venture investment portfolio and supporting blockchain projects through long-term investment strategies.Huobi Ventures aims to identify strategic opportunities across different blockchain verticals to complement and expand Huobi’s product offerings. Acquisitions will be integrated into Huobi’s growing suite of blockchain-enabled applications and services to expand the business into new markets.

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Huobi Ventures

Huobi Ventures

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Focus on Huobi’s venture investment portfolio and supporting innovative blockchain projects through long-term strategies. Twitter:@HuobiVentures