7 Aug 2025, 05:31

Renowned Economist Mohamed El-Erian Reveals September FED Interest Rate Forecast: “There May Be a Surprise”

Economist and Queens College Cambridge President Mohamed El-Erian made important assessments on US President Donald Trump’s dismissal of the Bureau of Statistics (BLS) President, the upcoming FED chair change, and interest rate cut expectations in the Morning Brief program. El-Erian argued that the Fed would have cut interest rates if it had known about the July employment revisions in advance. El-Erian stated, “If the Fed had seen the July employment revisions before the meeting, it would have definitely cut interest rates,” adding that current market conditions reflect the weakening economy. He emphasized that recent data indicates a significant decline in spending by low-income households, which he said is also reflected in corporate balance sheets. He noted that interest rate cut expectations in the US bond market have reached 90%, making it almost certain that the Fed will cut rates by at least 25 basis points in September. El-Erian said a 25 basis point cut in September was a certainty, but a larger 50 basis point cut was a possibility. Recalling that the Fed has made similar surprise moves in the past, he said, “Last year, they did nothing in July, and then in September, they made a jumbo 50 basis point cut.” Related News: Bitcoin Bull Economist Compares Solana and Ethereum: Reveals Which One Is Better El-Erian criticized President Trump's dismissal of the BLS head, arguing that the move undermined the institutional integrity of US economic data production. “Such dismissals undermine trust in the impartiality of statistical institutions,” he said. “This poses a serious problem for market confidence.” El-Erian reiterated that Fed Chair Jerome Powell should resign before his term expires. “Powell is leaving in May anyway,” he said. “However, as long as he remains in office, political pressure will increase, and this could undermine the Fed's independence,” he said, adding that this step would be the best choice to preserve the institutional structure. Trump's comments that he is considering Kevin Hassett and Kevin Warsh as the new Fed Chair, while Treasury Secretary Scott Besson's statement that he does not want the position, also came up on the program. El-Erian said that Chris Warsh and Kevin Warsh would be positive choices for the Fed's independence. *This is not investment advice. Continue Reading: Renowned Economist Mohamed El-Erian Reveals September FED Interest Rate Forecast: “There May Be a Surprise”

7 Aug 2025, 04:55

Bitcoin Volatility: Unveiling Surprising Stability as Implied Volatility Hits Lowest Levels Since October 2023

BitcoinWorld Bitcoin Volatility: Unveiling Surprising Stability as Implied Volatility Hits Lowest Levels Since October 2023 The cryptocurrency world often buzzes with dramatic price swings, but recently, something truly surprising has happened with Bitcoin volatility . The leading digital asset, historically known for its rollercoaster rides, has entered a period of unusual calm. This significant shift in Bitcoin price behavior is now capturing the attention of investors and analysts worldwide, potentially signaling a maturing phase for overall crypto market trends . What’s Behind Bitcoin’s Surprisingly Low Implied Volatility? Recent comprehensive data paints a clear picture: Bitcoin’s 30-day implied volatility has plunged to an astonishing 36.5%. This marks its lowest level since October 2023, according to CoinDesk, which cited detailed figures from volatility index provider Volmex Labs. But what exactly is implied volatility? Simply put, implied volatility represents the market’s forecast of future price fluctuations, derived directly from the pricing of options contracts. A lower reading, like the one we are seeing now, indicates that market participants are expecting less dramatic price movements in the near future. While the Bitcoin price has been navigating a specific high-value range, this reduction in implied volatility points towards a remarkable degree of stability. It suggests the market anticipates a calmer period for the world’s premier cryptocurrency, moving away from the extreme swings often associated with the nascent digital asset market . Why Is Bitcoin Volatility Experiencing This Decline? The primary factor driving this notable decline in Bitcoin volatility appears to be a significant reduction in hedging activity. Hedging involves investors taking strategic positions to offset potential losses that might arise from adverse price movements. When traders and institutions reduce their hedging efforts, it signals a collective decrease in concern about sudden, sharp price drops or unexpected surges. This, in turn, suggests a growing confidence in Bitcoin’s current price stability and its future trajectory. Moreover, this period of calm is particularly intriguing given the backdrop of broader economic anxieties, such as ongoing concerns about potential stagflation in the U.S. economy. Typically, such macroeconomic uncertainties might trigger increased volatility across various risk assets, including cryptocurrencies. However, Bitcoin seems to be charting its own distinct course, demonstrating a unique resilience and a different response compared to traditional financial markets. This divergence further underscores the evolving nature of current crypto market trends and Bitcoin’s increasing independence. How Do Current Bitcoin Price Trends Compare to Historical Patterns? Historically, there has often been a strong positive correlation between Bitcoin’s price movements and its volatility. This means that periods of rapid price appreciation or sharp declines were typically accompanied by a surge in volatility. However, recent observations by CoinDesk highlight a fascinating and important shift: a negative correlation has now emerged. In simpler terms, as the Bitcoin price holds steady or moves within a tighter, more predictable range, its volatility is actively decreasing. This particular pattern is far more common in bullish phases of established U.S. equity markets, where periods of sustained growth and stability often coincide with lower volatility. For Bitcoin to begin exhibiting similar behavior is a compelling sign of its potential maturation as an asset class. This trend could indicate that Bitcoin is attracting more long-term holders and a greater influx of institutional interest, both of whom generally prefer less volatile investment environments. Understanding this shift is absolutely crucial for anyone navigating the dynamic digital asset market . What Are the Implications of Low Bitcoin Volatility for Investors? The current environment of low Bitcoin volatility presents an intriguing and potentially transformative scenario for both seasoned investors and newcomers. On one hand, it could signal a period of consolidation, where the market gathers strength before its next significant price movement. On the other hand, it might genuinely indicate the dawn of a new era of relative stability for the cryptocurrency, making it a more predictable asset. For those closely monitoring crypto market trends , this reduced volatility might make Bitcoin a significantly more appealing asset. It lessens the immediate risk of dramatic short-term losses, potentially opening the door to a wider range of investors who are typically risk-averse. It is therefore crucial for all investors to monitor these evolving trends closely. While lower volatility might reduce immediate trading opportunities for some speculative traders, it could also pave the way for more consistent, predictable growth and broader mainstream adoption. Grasping these fundamental shifts in implied volatility is absolutely essential for effectively navigating the ever-changing digital asset landscape. In conclusion, the surprising and sustained drop in Bitcoin’s implied volatility to levels not witnessed since late 2023 marks a truly significant moment for the cryptocurrency. This profound shift, driven by factors like reduced hedging activity and a changing correlation with its price, strongly suggests a maturing asset and potentially a new, more stable phase for the Bitcoin price . As the digital asset market continues its rapid evolution, observing these fundamental changes in volatility will be paramount for both seasoned investors and curious newcomers. This stability could truly reshape perceptions of Bitcoin’s role in global finance. Frequently Asked Questions (FAQs) 1. What is implied volatility in cryptocurrency? Implied volatility is a forward-looking metric that estimates how much the price of an asset, like Bitcoin, is expected to fluctuate in the future. It is derived from the prices of options contracts, where higher options prices suggest higher expected volatility, and lower prices suggest lower expected volatility. 2. Why is Bitcoin’s implied volatility important for investors? For investors, Bitcoin’s implied volatility is a crucial indicator of market sentiment and perceived risk. Low implied volatility can suggest market confidence and stability, potentially making the asset more attractive to long-term investors. Conversely, high implied volatility often signals uncertainty and higher potential for rapid price swings. 3. Does low Bitcoin volatility mean its price won’t change? Not necessarily. Low volatility means that the market expects smaller, less dramatic price movements. The price can still go up or down, but the likelihood of extreme daily swings is reduced. It often suggests a period of consolidation or more gradual trends rather than sharp, unpredictable shifts. 4. How does reduced hedging activity affect Bitcoin volatility? Reduced hedging activity directly contributes to lower volatility because it indicates that market participants are less concerned about protecting against significant price changes. When fewer investors are buying options to hedge against price drops, it suggests a collective belief in the asset’s current stability or predictable trajectory, thus dampening overall market volatility. 5. What are the long-term implications of lower Bitcoin volatility? Lower Bitcoin volatility could have several long-term implications. It might attract a broader base of institutional and retail investors who prefer less risky assets, potentially leading to increased adoption and more stable growth. It could also signal Bitcoin’s maturation as an asset class, making it more comparable to traditional financial instruments in terms of market behavior. Did you find this analysis helpful? Share this article with your network on social media to spread awareness about the fascinating shifts in Bitcoin’s market dynamics! To learn more about the latest crypto market trends , explore our article on key developments shaping Bitcoin price action. This post Bitcoin Volatility: Unveiling Surprising Stability as Implied Volatility Hits Lowest Levels Since October 2023 first appeared on BitcoinWorld and is written by Editorial Team

7 Aug 2025, 04:52

Parataxis Plans Public Listing Through SPAC Merger to Fund Bitcoin Treasury Strategy

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7 Aug 2025, 04:37

Orca DAO Proposes Treasury Strategy for Solana Staking and ORCA Buybacks to Enhance Protocol Value

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7 Aug 2025, 04:32

Parataxis to go public in $640M SPAC merger with Silverbox

Bitcoin asset manager Parataxis will go public via a SPAC deal that could see up to $640 million in gross proceeds to fund a Bitcoin treasury.

7 Aug 2025, 04:14

Crypto Asset Manager Parataxis to Go Public in SPAC Merger, $640M BTC Treasury in Focus

Parataxis Holdings, an institutional digital asset manager, has confirmed a SPAC merger with SilverBox Corp IV to raise up to $640 million for a NYSE-listed Bitcoin treasury company. The combined firm will be named Pubco and will trade under the ticker “PRTX,” an official release noted. SPAC Earmarks $31M for BTC Purchase The special purpose acquisition company (SPAC) deal will deliver up to $240 million to Parataxis Holdings, subject to shareholder redemptions. “This includes $31 million of equity that will be funded immediately to purchase BTC,” the company said. Further, the deal values the combined company at $400 million, at a $10 share price. The share purchase agreement will give Pubco the flexibility to raise additional capital as needed to support the continued accumulation of BTC, it added. According to Parataxis CEO Edward Chin, the deal would make the new entity “well capitalised” to execute a BTC treasury strategy in the US. “We will also be ideally positioned to further establish and grow our successful foothold in South Korea with Parataxis Korea,” Chin said. Bitcoin Treasury Model Uptick The SPAC merger follows several other companies’ models in pursuing a Bitcoin treasury strategy, led by Michael Saylor’s Strategy (formerly MicroStrategy). Corporate buyers and Wall Street investors have added more than 166,000 Bitcoin in July. Per Bitcoin Treasuries data , the total BTC holdings, including publicly traded companies and exchange-traded products, increased to 3.64 million BTC worth $428 billion at month-end. “Today’s announcement brings us closer to realizing our vision of creating a publicly listed entity that delivers differentiated exposure to Bitcoin via a disciplined, institutional platform investing across underserved growth markets,” CEO Edward Chin added. Besides, the SPAC deal will specifically allow the firm to expand its BTC treasury strategy in the US and South Korean markets. The post Crypto Asset Manager Parataxis to Go Public in SPAC Merger, $640M BTC Treasury in Focus appeared first on Cryptonews .