Bitwise Advisor: Market Volatility Pattern Indicates Traders Expecting a Swift Rebound, with Volatility Likely to Remain Elevated


November 23rd, Bitwise advisor Jeff Park posted on social media stating that a notable phenomenon during the recent selloff is that the market's volatility characteristics are more akin to "Strike Price Stickiness" rather than "Delta Stickiness." (This indicates that this selloff was not primarily driven by market makers' mechanical delta hedging but by market participants' concentrated views and actions around a specific price point (strike price).) This is in stark contrast to the market behavior during an "Expiration Day."This characteristic signals two possibilities: first, traders believe that the market may experience a rapid rebound; second, the volatility will continue to remain at elevated levels.