BTC volatility falls to lowest level since last October

An analysis suggests that a sharp drop in Bitcoin's volatility indicates the market is not significantly concerned about risk. According to CoinDesk, the BTC 30-day Implied Volatility Index (BVIV) recently fell to 38%, its lowest level since October of last year. Silian Tang, a partner at Monarq Asset Management, explained that the decline in the BVIV signals reduced risk aversion in the market. He attributed this to easing geopolitical tensions related to Iran and continuous BTC purchases by Strategy. Tang noted that Strategy's acquisitions, based on its STRC preferred stock structure, are supporting the market's bottom and limiting downside volatility. He added that systematic call option selling by institutional investors has also contributed to the drop in volatility. According to Tang, many institutions are holding spot BTC while consistently selling high-strike call options to secure premium income, a process that is lowering the market's overall implied volatility.