Bitcoin volatility has surged to six-month highs, with both implied and realized volatility indices reaching levels not seen since the yen carry trade unwind in August. The price of bitcoin recently crossed $109,000, fueling short-term speculation and increasing open interest in options by 44,000 BTC ahead of the inauguration of President-elect Donald Trump. Realized volatility, reflecting historical price fluctuations over the past month, reached 67 on the Bitcoin Volatility Index, while the Implied Volatility Index hit 71, indicating strong expectations for future price movements. Analysts suggest that traders are particularly interested in short-duration call options, reflecting bullish sentiment. Speculation is also rife around Trump's potential announcement of a strategic bitcoin reserve, which, combined with his social media influence, is driving optimism in the crypto markets for further gains throughout the year.

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