Bitcoin Volatility Slips to 11-Month Low as Options Demand Dwindles

BitcoinWorld Bitcoin Volatility Slips to 11-Month Low as Options Demand Dwindles Bitcoin’s options market is signaling a notable calm, with implied volatility falling to its lowest level in nearly a year.

The Volmex BVIV Index, which measures annualized 30-day implied volatility for Bitcoin options, dropped to 35.59% over the weekend, a level not seen since September last year.

This marks a sharp contrast to February, when the index spiked above 90% as Bitcoin tumbled from $90,000 to around $60,000. What’s Behind the Volatility Crush?

The primary driver, according to Griffin Sears, head of derivatives at FalconX, is a supply-demand imbalance in the options market. Demand for directional options—bets on large price moves in either direction—has evaporated, while supply has remained elevated.