Bitcoin Implied Volatility Drops to 36%, Low Volatility Does Not Equal Low Risk

Bitcoin's 30-day implied volatility has fallen to 36%, reaching a long-term support level, with prices oscillating narrowly below $65,000. Adam Haeems, head of asset management at Tesseract Group, warns that low volatility should not be mistaken for low risk. Traders can establish positions and hedge at low costs during periods of low market volatility, but if the market breaks through concentrated holding levels, it may accelerate trends. Caution is advised when using leverage, especially in conditions of low trading volume and market depth. Regarding market sentiment, Paul Howard, senior director at Wincent, notes a decrease in demand for put options, but insufficient buying of call options. Glassnode indicates that the disappearance of call option buying has led to asymmetry. Howard believes the next major catalyst could be positive regulatory news, such as the Clarity Act, which may lead to institutional ETF inflows.