Bitcoin volatility has fallen to its lowest level since September as quiet trading reduces demand for options protection.
Bitcoin‘s volatility has fallen to its lowest level in nine months as quiet trading and interest in other risk assets pull speculative money away from the largest crypto by market cap.
The Bitcoin Volmex Implied Volatility Index fell to 36.11 on Monday in Singapore, its lowest level since September and close to its lowest level since 2023, Bloomberg reported on Tuesday. The index tracks the market’s expected 30-day Bitcoin volatility using real-time crypto options prices.
At the time of writing, Bitcoin is trading at around $77,000, per CoinGecko, unable to breach the $80,000 mark despite being almost 40% below its peak price last October, which stood just over $126,000.
In the meantime, U.S. spot bitcoin ETFs had witnessed an outflow of about $1 billion in May alone, Bloomberg notes.
Read also: Bitcoin Four Year Cycle Isn’t Dead, Analyst Says
Volatility Selling Keeps Pressure
Damien Loh, chief investment officer at fund manager Ericsenz Capital, told Bloomberg that negative Bitcoin ETF flows and a positive risk-market backdrop have been “canceling out each other.” Loh said:
“ETF flows have been negative for Bitcoin but the overall picture for risk has been positive for markets and I think those two factors have been canceling out each other.”
Rajiv Sawhney, head of international portfolio management at Wave Digital Assets, told Bloomberg that long-term investors, Bitcoin miners, and more institutional funds had been selling volatility and earning from it, since BTC▼$64,376.00 isn’t an asset that pays out a dividend by default.
As Sawhney explained, if Bitcoin is trapped in a range, then its holders can sell options rather than just waiting for price growth. And the process will reduce implied volatility until the markets remain stable.
He further added that speculative investments were flowing into AI and memory chips, not into BTC anymore.
Read more: Bitcoin ETF Flows May 2026: 6-Day Outflow Streak Pushes Market Close to Negative for the Year
