Bitcoin Volatility Drops to Lowest Since 2023, Reflecting Wall Street-Like Market Maturity
Bitcoin (BTC) is experiencing a sharp decline in volatility, echoing patterns more commonly seen in traditional equity markets. The cryptocurrency has traded steadily between $110,000 and $120,000, with minimal price movement and weakening speculative interest.
Data from Volmex’s BVIV index shows Bitcoin’s 30-day implied volatility has fallen to an annualized 36.5%—the lowest since October 2023, when BTC was under $30,000, according to TradingView. This suggests traders are not aggressively buying options to hedge or speculate, despite macroeconomic concerns like stagflation emerging in U.S. data.
This drop in volatility mirrors trends in equities. The VIX, which measures implied volatility in the S&P 500, has declined after spiking from 17 to 21 last week.
A Shift in Bitcoin’s Market Behavior
Historically, Bitcoin’s price and volatility moved together—both rising during strong uptrends or sharp sell-offs. However, BTC’s implied volatility has steadily declined even as its price surged from $70,000 to over $110,000 since November.
Analysts point to the increasing use of structured investment strategies, particularly the selling of out-of-the-money call options, as a major factor behind this shift. These strategies tend to suppress implied volatility, especially in bullish markets.
This evolving dynamic indicates that Bitcoin is starting to behave more like traditional assets on Wall Street—where volatility often recedes during extended rallies. It also reflects growing institutional involvement and a maturing market structure.
