Bitcoin’s 30-day implied volatility index falls to 36%, its lowest since May, despite recent hacks and weak institutional demand.
Bitcoin’s 30-day implied volatility index, BVIV, has declined to 36%, the lowest level since May 31, despite ongoing market pressures. The drop contrasts with recent challenges, including a multimillion-dollar Coldcard hack and weak institutional demand for crypto assets.
The index, which reflects demand for options and hedging, had peaked near 60% in early June. Historically, low volatility levels have preceded sharp price swings, either bullish or bearish. Analysts note that volatility tends to revert to historical averages, suggesting potential for a rebound.
Institutional demand remains subdued, with U.S.-listed spot bitcoin ETFs recording $61.53 million in outflows last week. Stablecoin market caps, including USDT and USDC, also continue to trend downward, signaling cautious sentiment.