Bitcoin options volatility cools as implied volatility gains narrow

  • Adam said options investors lowered expectations as Bitcoin’s rally slowed.
  • About 40% of existing option positions were due to expire at month-end.
  • Short- and medium-term implied volatility remained 10% above two-week levels.

Bitcoin’s rapid rise has improved sentiment across BTC and other cryptocurrency sectors, but slowing momentum has led large options-market investors to reduce their expectations for future price movements. Adam, a researcher at crypto options analytics firm Greeks.live, said short- and medium-term implied volatility (IV) was falling rapidly but remained about 10% above levels from two weeks earlier. The increase in medium- and long-term IV had narrowed to less than 2%, pointing to more limited expected price fluctuations. Greeks.live data showed that about 40% of existing option positions were due to expire at month-end, with notable strike-price concentration between $80,000 and $90,000. Bitcoin has also approached a high-volume trading area in the futures market that Adam identified as a potential resistance zone; a break above it could increase upward pressure because of the concentration of positions.

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