What Is the Immediate Market Reaction (Price and Volatility) to News of a Pool Nearing 51% Control?
News of a pool nearing 51% control would immediately trigger a sharp drop in the cryptocurrency's price due to a loss of market confidence in the network's security and decentralization. Simultaneously, the implied volatility of derivative products would spike as traders panic-sell or buy protective options.
The market would be pricing in the increased risk of a potential 51% attack.