Deribit Exchange Data Shows Crypto Options Markets Signaling Calm as Volatility Expectations Decline
Bitcoin and ethereum options markets are showing signs of equilibrium as implied volatility metrics pull back from recent highs. The Deribit DVOL index for BTC dropped to 40%, its lowest level since October, while Ethereum's equivalent gauge fell below 60%—a level not seen since September 2024.
This cooling of risk premiums suggests traders are anticipating range-bound price action despite macroeconomic crosscurrents. The BVIV index confirms the trend, with November's peaks of 59% for BTC and 80.38% for ETH now in the rearview mirror.
Market makers note weakening demand for protective puts, especially in ETH markets where volatility expectations have been cut in half from November extremes. 'The options market is pricing consolidation, not catastrophe,' commented an anonymous Deribit trader.
