Falling BTC volatility dampens hopes for year-end rally

The Bitcoin volatility index continues to decline, weakening the possibility of a year-end rally, according to an analysis by CoinDesk. The media outlet noted that the Volmex BTC 30-day Implied Volatility Index (BVIV), which is based on options market data, has fallen to 49%. This marks a near-complete reversal from its mid-November peak of 65%. In a related analysis, crypto services provider Matrixport stated that as Bitcoin's implied volatility shrinks, the chances of a year-end rally are also reduced. The firm suggested that the upcoming U.S. Federal Open Market Committee (FOMC) meeting on Dec. 11 could serve as a final catalyst, but that volatility may slow even further afterward.