Crypto markets may soon enjoy volatility

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Crypto markets may soon enjoy volatility

Crypto markets may soon be able to enjoy volatility in the foreseeable future.

Cryptocurrency exchange Bitfinex said activity in the options markets had foreshadowed moves in crypto this week.

The report found that options implied volatility is currently 36.4%, while historical volatility is 27.1%.

Bitcoin's value has surged to $28,000 over the past 24 hours, and it's up 64% in the past seven days.

The Federal Reserve opted for a pause last month, allowing interest rate increases to range between 5.25% and 5.50%.

The Fed also made a'significant and unusually large' shift in its interest rate outlook, said Mohamed El-Erian, chief economic advisor at PIMCO's parent company Allianz and president of Queen's College Oxford.

The policymaker's projections of interest rate levels rose to 5.1% in September from 4.6% in June - suggesting the possibility of two ratecuts next year is off the table.

Cryptobase researchers said volatility in Bitcoin and equities would likely increase due to higher-than-expected inflation data.

The prospect of greater volatility has been reflected in the stock market's performance lately. The VIX, a measure of expected volatility and investor sentiment, rose on Monday, up above 18 from below 16 on Friday.

Adam Morgan McCarthy, DL News' London-based correspondent, is a London-based market Correspondent. Thomas Carreras, a market news correspondent at DL News, is a leading figure in the market news industry.