Key facts
- Bitcoin's volatility index (BVIV) dropped to 35.59% over the weekend, the lowest since September.
- Demand for options predicting significant price movements has diminished.
- Miners and corporate treasuries are actively selling options, increasing market supply.
- Despite low overall volatility, put options remain more expensive than call options, indicating caution.
- Bitcoin's price has been trading within a narrow range of $62,000 to $66,000 since early July.
Bitcoin's volatility index, known as BVIV, has fallen to 35.59%, its lowest point since September, signaling a significant decrease in demand for options that bet on large price swings. This decline is attributed to a supply-demand imbalance in the crypto options market, where a reduced appetite for directional bets coincides with an increased supply of options from miners and corporate treasuries employing overwriting strategies to generate yield.