Fidelity Identifies Peculiar Thing About Bitcoin Rally

Key Points

1. Bitcoin's 30-day historical volatility has dropped significantly from over 60% in March to just 20% in August.

2. At-the-money implied volatility for Bitcoin options is currently near all-time lows, according to Glassnode data.

3. Bitcoin experienced a sudden price drop below $118,000 after reaching an all-time high of $124,517, triggered by Treasury Secretary Scott Bessent's statement ruling out Bitcoin purchases for the strategic reserve.

4. The decline was also influenced by unfavorable wholesale inflation data, reducing the likelihood of another rate cut.