In the cryptocurrency market, Bitcoin’s volatility has fallen to its lowest level in recent months, drawing attention. According to the latest data, Bitcoin’s 30-day Volatility Index (BVIV) has dropped to 38%, the lowest level seen since October 2025. Experts believe this development indicates a weakening of risk perception in the market and a more cautious outlook among investors.
Silian Tang, a partner at Monarq Asset Management, said the decline in BVIV indicated a decrease in investor risk aversion.
According to Tang, there are two main factors behind this situation: the easing of geopolitical tensions stemming from Iran and Strategy’s regular Bitcoin purchases. Specifically, it was stated that Strategy’s BTC accumulation through its STRC preferred stock structure has created a strong base in the market and limited downward movements.
Tang also noted that option strategies employed by institutional investors suppressed volatility. According to him, many institutions earn premium income by holding spot Bitcoin while simultaneously selling high-strike-price call options. These systematic sales reportedly reduced implied volatility in the market.
Analysts say that the decrease in volatility could pave the way for more stable price movements in the short term, but it could also be one of the calm periods seen before major directional movements. How Bitcoin will behave in this low-volatility environment will depend on macroeconomic developments and the continuation of institutional demand.
*This is not investment advice.
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