Bitcoin options-implied volatility has dropped to its lowest since May 31 despite security, demand and macro pressures, a sign analysts say may point to resilient sentiment and room for further gains.
Bitcoin market sentiment has remained calm despite a string of negative developments, including a Coldcard wallet attack involving tens of millions of dollars, weak institutional demand, and uncertainty around regulation and the macroeconomic backdrop. The 30-day Bitcoin Volatility Index, or BVIV, which tracks implied volatility in the options market, has fallen to 36%, its lowest level since May 31 and well below the nearly 60% peak seen in early June. BVIV measures expectations for future price swings and typically rises when investors seek options protection or hedge risk. Analysts say the lack of panic amid adverse headlines is often viewed as a constructive signal, suggesting Bitcoin could still have room to move higher.