Renewed Lull in Bitcoin (BTC) Prices Leaves Crypto Traders Fearful of ‘Tail Risk’

“Looking at the BTC butterfly index, we can see that wings are near the upper 90% percentile (red horizontal line). So, [while] outright volatility [metrics] seems confident in spot price consolidation, traders are still paying up for tails,” Greg Magadini, director of derivatives at Amberdata, said in the weekly newsletter.