Share this article
Bitcoin's Volatility Disappears to Levels Not Seen Since October 2023
The shift in volatility patterns suggests bitcoin is increasingly mirroring Wall Street dynamics.
Updated Aug 7, 2025, 1:14 p.m. Published Aug 7, 2025, 3:18 a.m.
What to know:
- Bitcoin's implied volatility has tanked to multi-year lows, moving in the opposite direction of prices.
- The shift in volatility patterns suggests bitcoin is increasingly mirroring Wall Street dynamics.
Bitcoin's volatility meltdown continues as the cryptocurrency remains stagnant, with slow price action between $110,000 and $120,000.
The cryptocurrency's 30-day implied volatility, as represented by Volmex's BVIV index, fell to an annualized 36.5% late on Wednesday, reaching levels last seen in October 2023, when BTC was trading below $30,000, according to data source TradingView.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The new multi-year low in implied volatility suggests that options traders are not yet rushing for hedges, despite U.S. economic data raising concerns about stagflation. The demand for options, which are contracts used to hedge against or profit from price swings, is a major driver of an asset's implied volatility.
The same thing can be said about stocks, where the VIX index has reversed Friday's spike from 17 to 21. The VIX measures the 30-day implied volatility in the S&P 500.
BTC mirrors stock market volatility patterns
BTC's implied volatility has been in a months-long downtrend, moving in the opposite direction of the cryptocurrency's price, which has surged from $70,000 to over $110,000 since November.
The negative correlation marks a profound shift in bitcoin's market dynamics. Historically, BTC's volatility and its spot price moved in tandem, with volatility rising in both bull and bear markets.
The change in this spot-volatility correlation is attributed, in part, to the growing popularity of structured products that involve the writing (selling) of out-of-the-money call options, analysts told CoinDesk.
This new dynamic suggests that bitcoin is increasingly mirroring patterns on Wall Street, where implied volatility often dwindles during steady bull runs.
Más para ti
Lo que debes saber:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Más para ti
Bitcoin Faces Japan Rate Hike: Debunking The Yen Carry Trade Unwind Alarms, Real Risk Elsewhere
Speculators maintain net bullish positions in the yen, limiting scope for sudden JPY strength and mass carry unwind.
Lo que debes saber:
- Impending BOJ rate hike largely priced in; Japanese bond yields near multi-decade highs.
- Speculators maintain net bullish positions in the yen, limiting scope for sudden yen strength.
- BOJ tightening may contribute to sustained upward pressure on global yields, impacting risk sentiment.
Top Stories
