QCP Capital: Bitcoin and Ether Volatility Indicator Alert Markets Are Entering a Period of Increased Volatility

QCP Capital posted that the Volatility Momentum Indicator (VMI) for Bitcoin and Ether triggered an alert this morning, indicating that the market is entering a period of increased volatility. The signal is directionally agnostic, meaning that it does not indicate point direction, but suggests that large price swings are possible in the short term (the chart below shows the implied volatility of BTC on the historical VML signal). Historically, this is the point at which shifting from an income-producing strategy to a long convexity (buying options) strategy can help optimize portfolio returns.