Bybit: BTC option IV at yearly low as traders hedge downside

Implied volatility (IV) for Bitcoin and Ethereum options is trading at its lowest level this year as traders move to hedge against geopolitical risks, Bybit said in its weekly options report. The report noted that ongoing geopolitical conflict between the U.S. and Iran has fueled inflation concerns and a sell-off in the global bond market, significantly dampening crypto market sentiment. BTC's implied volatility remains in the 30% range, a yearly low, suggesting that traders see a low probability of short-term price swings and are focused on defending against downside risk. Unlike the U.S. stock market, which is rising on AI optimism, the crypto market is showing a clear decoupling trend due to continuous capital outflows and macroeconomic pressure, the report added.