In a bid to cater to the growing volatility in the cryptocurrency market, Bitfinex Derivatives, a platform operated by iFinex Financial Technologies Limited, has rolled out two fresh perpetual futures contracts. These contracts aim to mirror the expected price swings of Bitcoin (BTC) and Ether (ETH) options.

The move comes amidst Bitfinex's efforts to broaden its range of trading instruments in response to the perceived uptick in crypto market unpredictability. Termed as 'implied volatility' contracts, these offerings gauge the anticipated constant forward-looking volatility in the options market, as explained by Bitfinex.

These novel contracts are linked to the Volmex Implied Volatility indexes, namely the Bitcoin Implied Volatility Index (BVIV) and Ethereum Implied Volatility Index (EVIV). Developed by Volmex Labs, these indices track the 30-day expected volatility of BTC and ETH options contracts, making them the pioneering crypto volatility indices in the sector.

Bitfinex users can now engage in trading the expected volatility of Bitcoin and Ether through these perpetual futures, which offer leverage of up to 20 times. Jag Kooner, head of derivatives at Bitfinex, stressed the significance of these additions, highlighting their simplicity in allowing users to not only monitor but also trade the implied volatility of BTC and ETH.

Perpetual futures, also known as perpetual swaps, eliminate the need for an expiration date, making them highly tradable in the crypto space. This format allows traders to speculate on future price movements without constraints posed by dated structures.

The funding rate mechanism inherent in perpetual futures ensures alignment of prices with the underlying assets or indices. With this new offering, Bitfinex users can take positions on anticipated bullish or bearish price swings, based on their outlook on volatility.

In essence, betting on long volatility corresponds to anticipating significant price fluctuations, while betting on short volatility anticipates subdued price movements. This aligns with the market's 'fear' sentiment, reflecting expectations of price changes in Bitcoin and Ether.

Cryptocurrency volatility peaked in March 2024, with the Crypto Volatility Index (CVI) hitting a record high of 85 points. This surge preceded Bitcoin's historic peak above $73,000, highlighting the relevance of volatility in crypto trading strategies.

In conclusion, Bitfinex's introduction of Bitcoin and Ether futures tied to expected price swings reflects a proactive approach to addressing the evolving needs of traders amid heightened market volatility.