Bitcoin on the rise: the rally supported by the FED and decreasing volatility

The decision of the Federal Reserve (FED) to keep the cost of money unchanged in the United States had an immediate and positive impact on the price of Bitcoin. 

In particular, Bitcoin has experienced a new bull momentum, fueled by a significant change in institutional investors’ sentiment. 

In particular, it is emphasized by Sui Chung, CEO of CF Benchmarks. This is a company controlled by Kraken and specialized in providing benchmark indices for the crypto sector.

According to Chung, the recent Bitcoin rally is not just the result of simple speculative enthusiasm. Rather, it reflects a deeper transformation in market behavior, supported by concrete data and a growing maturity of the operators.

Volatility Decreasing for Bitcoin: A Sign of Stability After FED Actions

One of the key indicators confirming this trend is the Bitcoin Volatility Index (BVX) by CF Benchmarks. This index, which measures the implied market volatility, has recorded a drop of more than 20% in the last month. 

A contraction so significant in volatility, in a context of rising prices, represents an anomaly compared to the historical cycles of criptovalute.

Traditionally, rallies in the crypto sector have been accompanied by an increase in volatility, a symptom of a market dominated by emotions and speculative movements. 

Today, however, an inverse dynamic is observed: prices rise while volatility decreases. This suggests that the market is becoming more rational. Furthermore, it indicates that price discovery is increasingly driven by stable and informed capital flows.

Another element that strengthens confidence in the current rally is represented by the structure of options on Bitcoin offered by the Chicago Mercantile Exchange (CME).

According to Chung, the options show a clear positive bias over various expirations, indicating that investors are willing to pay a premium to bet on a further price rise.

This asymmetry in positioning reveals a sentiment of structured optimism. It is not a simple short-term speculation, but a long-term vision that sees Bitcoin as an asset increasingly integrated into institutional portfolios.

The combination of volatility compression and bullish positioning in options suggests that the current rally is supported by more solid foundations compared to the past. 

This is not about a sudden surge fueled by hype or sensational news, but about steady progress, driven by growing confidence in the maturity of the crypto market.

According to Chung, this scenario represents an important evolution for the entire cryptocurrency ecosystem. 

The presence of institutional operators, the use of sophisticated financial instruments such as options, and the reduction of implied volatility are all signals indicating a market in a consolidation phase.

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The new era for Bitcoin?

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The current behavior of the market could mark the beginning of a new phase for Bitcoin and for cryptocurrencies in general. 

A phase in which growth is no longer fueled exclusively by retail interest or external events, but by a systemic confidence that is reflected in the data and strategies of professional investors.

The decision of the Federal Reserve not to modify the rates has likely contributed to strengthening this confidence. Thus offering a more predictable macroeconomic context favorable to alternative assets.

In an environment of stable rates, investors are more inclined to seek returns in markets like that of cryptocurrencies. Especially when these show signs of maturation and stability.

The current Bitcoin rally, although still evolving, presents characteristics that distinctly set it apart from previous cycles.

The reduction of volatility, the optimism in derivatives, and the institutional involvement are elements that indicate a structural change in the way the market perceives and evaluates cryptocurrencies.

As highlighted by Sui Chung, we are facing a context in which price discovery is no longer dominated by emotional impulses, but by a more rational and informed logic. 

This could represent a turning point for Bitcoin and for the entire sector. Thus paving the way for a more sustainable and less volatile growth phase.

In a constantly evolving financial world, where central banks play a crucial role and investors seek new opportunities, cryptocurrencies finally seem ready to occupy a stable and recognized space within the global landscape.