The spike in Treasury market volatility, represented by the MOVE index, can lead to risk aversion.traded listless between key averages early Tuesday amid elevated volatility in the U.S. bond market and sharp losses in Chinese stocks.Bollinger bands are volatility bands placed two standard deviations above and below the 20-day simple moving average of the asset's price. The bandwidth is calculated by dividing the spread between the volatility bands by the 20-period SMA.
The bitcoin market, however, showed no such signs at press time, with prices locked within a narrow range between the 200-day simple moving average resistance at $63,550 and the 50-day SMA support at $60,819. BTC trades listless and the MOVE index spikes in a sign of increased volatility in the U.S. Treasury notes.
The MOVE index, which measures expected volatility in U.S. Treasury notes, surged 24% Monday, reaching the highest since early January, according to TradingView. Increased volatility in the Treasury notes, which play a prominent role in global collateral and finance, often causes financial tightening and risk aversion. The situationThe path of least resistance for the dollar index is on the higher side as the notion of an aggressively dovish Fed has faded. According to ING, the dollar index could rise to 103 by the end of the month. The index was steady at around 102.45 at press time.