What Does a High Reading on the DVOL Index Typically Indicate?

A high reading on the DVOL (Deribit Volatility Index) indicates that the market is pricing in a high expectation of future price volatility for the underlying crypto asset (e.g. Bitcoin) over the next 30 days.

This typically suggests market fear and uncertainty, as traders are willing to pay high premiums for protective options. High DVOL often correlates with sharp market downturns or periods of high uncertainty.