Overview

• Bitcoin’s 30-day implied volatility, as tracked by the BVIV index, dropped to around 36%, its lowest level since October 2023
• Bitcoin’s price has stayed within a $110,000 to $120,000 range even as volatility has contracted
• The usual positive correlation between Bitcoin’s price and implied volatility has inverted, mirroring how the VIX behaves during steady equity rallies
• Analysts point to growing institutional adoption and the use of ETFs, options and structured products like out-of-the-money call writing as key drivers of the volatility collapse
• The emergence of a low-volatility environment is interpreted as a sign of rising investor confidence and could foster new Bitcoin infrastructure innovations