Low Volatility Lures Investors into False Sense of Security

Bitcoin's volatility index (BVIV) has hit its lowest level since September 2025, dropping to 35.59%. This decline in demand for options betting on big price swings reflects a shift in market dynamics.

The ongoing low volatility may create a false sense of security for leveraged investors, according to experts.

Despite the drop in BVIV, put options remain expensive, indicating continued concerns about potential price drops. This is unusual given the current steady prices between $62,000 and $66,000.

The market's flood with options supply due to miners and corporates using overwriting strategies has suppressed volatility.