Bitcoin Volatility Dips as Market Prepares for Jobs Report

Bitcoin has seen a significant decrease in volatility in recent times, but this doesn't mean that risk has disappeared. According to CoinGlass data, put options made up 53.8% of bitcoin options volume over the past 24 hours, with three of the four most-traded contracts being puts at $62,000 or $63,000 expiring on August 10, 14, and 28.

The market's focus on downside protection is evident in Deribit's DVOL index, which tracks bitcoin's expected 30-day volatility and has dropped to near 35, down from a high of 90 earlier this year. This implies that the market expects little movement in the short term.

Macro data from the U.S., particularly the upcoming jobs report, will test these expectations. Economists expect payrolls to have increased by roughly 97,500 in July, which could lift bond yields and reinforce expectations for a Federal Reserve rate increase.