BTC volatility spikes as price slides from $85k to $60k

BTC experienced a sharp drop from $85k to $60k before stabilizing around $66k. Matrixport observed high volatility in the options market, with implied volatility climbing from 40% to 65% before easing back to 50%. The firm noted extreme pessimism, decreasing open interest, and outflows leading to thin liquidity and participation in the market. Historically, high volatility, low sensitivity, and low liquidity have preceded strong upward movements in crypto markets. Matrixport highlighted that while there are signs of improving macroeconomic conditions, the lack of a clear reaction in cryptocurrency prices may not last.