Volmex Research Study Shows Macroeconomic Announcements Significantly Influence Bitcoin Volatility

Regular macroeconomic announcements significantly affect the actual and implied volatility of Bitcoin (BTC) in the cryptocurrency market, Volmex Research said in a new paper on September 26th.

The study found that CPI and Fed decisions have the greatest impact on volatility levels, with CPI typically leading to sustained volatility for up to 24 hours, while the impact of Fed decisions dissipates more quickly, especially in implied volatility metrics.

In addition, the findings are further validated by a robustness test using multiple time windows and incorporating Ethernet (ETH) prices. This provides traders and market participants with a basis for strategy development in response to price volatility triggered by these important macroeconomic announcements.