Traders Rush Into Bitcoin Options as Implied Volatility Drops, Is a Big Move Coming?
The crypto asset market has stabilized after a rally exceeding a $3 trillion market cap, with traders increasingly using options contracts for Bitcoin (BTC) and Ethereum (ETH). BTC is trading between $94,000 and $95,000, while implied volatility (IV) has decreased; Bitcoin's 7-day IV fell from 53% to 38%, and 30-day IV from 50% to 43%. Ethereum's IV also declined, with 7-day IV dropping from 74% to 61% and 30-day IV from 69% to 63%. Despite a bullish bias among options traders on Derive.xyz, where calls outnumber puts significantly, other exchanges like Deribit show mixed sentiment. On-chain data indicates strengthening fundamentals for Bitcoin, with the Market Value to Realized Value (MVRV) ratio at 2.12, suggesting an average unrealized gain of about 112%. A potential "golden cross" in MVRV could signal renewed bullish momentum, although ongoing monitoring is necessary to assess trend sustainability.
