According to BlockBeats, on July 3rd, according to the Deribit Bitcoin Volatility Index data, the implied volatility of Bitcoin has dropped to its lowest level in nearly two years. This index tracks 30 day forward looking annualized price volatility expectations, indicating significant changes in trading behavior for this largest cryptocurrency.
Over the past two months, Bitcoin has consistently fluctuated within a narrow range of $93000 to $111000, in stark contrast to its historical price trend. Market analysts attribute the decrease in volatility to multiple factors, among which the increase in call option sell operations by Bitcoin holders is particularly crucial.
David Lawant, head of research at FalconX, pointed out that this strategy of earning profits by selling call options effectively suppresses price volatility. Currently, about 80% of Bitcoin option holdings in the market are concentrated in the strike price range of $100000 to $120000, forming a natural price buffer zone. It is worth noting that despite the decrease in volatility, the funding rate for Bitcoin perpetual contracts remains positive, indicating that the market's bullish sentiment has not changed.
