Options-based implied volatility metrics indicate that the U.S. Securities and Exchange Commission’s crackdown against heavyweight cryptocurrency exchanges Coinbase and Binance (COIN) did not cause any unease among bitcoin (BTC), savvy traders. This is a sign that the lawsuits had been anticipated and were priced in.

Christopher Newhouse is an independent crypto derivatives broker. “The biggest takeaway I have for myself is that everyone has been searching for a catalyst which will shock implied volatility to life, and see a renewed bid for options with longer dates,” he said. “But I don’t see much evidence of this, which would suggest that players in the volatility markets are ignoring it.”

He said that regulatory concerns had been present since the start of the year. The market may have anticipated and priced the SEC’s action.

The implied volatility (IV), which is based on option data, reflects the expectations of investors for price volatility over a certain period. Demand for derivatives, such as options that protect the buyer against bearish or bullish fluctuations, has a positive impact on implied volatility. Call options protect against rallies while put options protect against drops.

The rising demand for options, and the increase in implied volatility that follows, often reflect increased caution in the market as well as the potential for price volatility in either direction. Bitcoin implied volatility is at best a modest rise.

Bitcoin’s 7-day annualized volatility increased to 43% after the SEC announcement, but has since dropped to 40%. This is a mere six-point gain for the week. According to Amberdata, the 30-day indicator has risen by four points since multi-month lows. The three and six month IVs are largely unchanged.

“We’ve seen a brief pop in the front end [short duration]” IV. There are no signs of panic,” David Brickell told CoinDesk, the director of institutional sales for Paradigm’s crypto liquidity network.

Griffin Ardern is a volatility trader for crypto asset management company Blofin. He said that the SEC action was more harmful to alternative cryptocurrencies or coins other than Bitcoin.

Ardern, speaking to CoinDesk, said that “IVs are indeed on the rise, but it’s not a large increase, and the majority of the growth is concentrated in front-end options [short term]”.

The SEC’s enforcement focuses primarily on altcoins and has classified many altcoins as securities. As a result, BTC and ETH are relatively unaffected by this.

The SEC in its lawsuit against Coinbase mentioned Solana Token (VGX), Cardano Token (ADA), Filecoin Token (FIL), Sandbox Token (SAND), Axie-Infinity Token (AXS), Chiliz Token (CHZ), Internet Computer Token (ICP), Voyager Token Token (VGX), NEAR Protocol Token (NEAR), NEXO Token Token Token Token Token Token Token To

CoinDesk’s data shows that Bitcoin has seen a daily price movement of 3% to 5 % in a small range between $25,300 and $27,400 since Monday. Ether’s range has been between $1,800 to $1,900.

Ardern stated that “when liquidity leaves alternative currencies, it returns to BTC, Ethereum and stablecoins.”

Sheldon Reback is the editor.