Source: CryptoNewsNet
Original Title: Bitcoin’s market got calmer in 2025 thanks to yield-hungry institutional investors
Original Link:
The bitcoin BTC market grew much calmer in 2025 as institutions embraced derivatives tied to the leading cryptocurrency to generate extra cash from their idle coin holdings.
The calmness is evident in the consistent decline in BTC’s annualized 30-day implied volatility, as measured by Volmex’s BVIV and Deribit’s DVOL indexes. These metrics indicate expectations for price volatility over the next four weeks.
Both indices began the year at around 70% and are ending the year near 45%, having hit a low of 35% in September. This steady downtrend stems from institutions selling call options on top of their spot market holdings to harvest yield.
“We [definitely] saw a structural decline in BTC implied vol as more institutional money came in and was happy to harvest yield by selling upside calls,” Imran Lakha, founder of Options Insights, said.
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Bitcoin's Market Calmed in 2025 as Yield-Hungry Institutional Investors Embrace Derivatives
Source: CryptoNewsNet Original Title: Bitcoin’s market got calmer in 2025 thanks to yield-hungry institutional investors Original Link: The bitcoin BTC market grew much calmer in 2025 as institutions embraced derivatives tied to the leading cryptocurrency to generate extra cash from their idle coin holdings.
The calmness is evident in the consistent decline in BTC’s annualized 30-day implied volatility, as measured by Volmex’s BVIV and Deribit’s DVOL indexes. These metrics indicate expectations for price volatility over the next four weeks.
Both indices began the year at around 70% and are ending the year near 45%, having hit a low of 35% in September. This steady downtrend stems from institutions selling call options on top of their spot market holdings to harvest yield.
“We [definitely] saw a structural decline in BTC implied vol as more institutional money came in and was happy to harvest yield by selling upside calls,” Imran Lakha, founder of Options Insights, said.