Bitcoin implied volatility drops to 7 month low despite macro risks
Key takeaways
- The cryptocurrency's annualized 30-day implied volatility index, BVIV, continues to slide, hitting 38%, its lowest reading since October 2025, according to data source Volmex.
- “Bitcoin volatility has collapsed, and you can see it clearly in the BVIV levels, which we track closely to monitor market complacency,” said Shiliang Tang, Managing Partner at Monarq Asset Management.
- “First, the geopolitical risk from the Iran conflict is finally moving into the later stages.
The cryptocurrency's annualized 30-day implied volatility index, BVIV, continues to slide, hitting 38%, its lowest reading since October 2025, according to data source Volmex. When implied volatility falls, it signals that traders expect calmer price action and fewer large moves ahead.
“Bitcoin volatility has collapsed, and you can see it clearly in the BVIV levels, which we track closely to monitor market complacency,” said Shiliang Tang, Managing Partner at Monarq Asset Management.
“First, the geopolitical risk from the Iran conflict is finally moving into the later stages. Second, the continued BTC buying from Strategy (MSTR) and its perpetual preferred STRC complex is dampening downside BTC volatility by acting as a structural floor," Tang added.