In 2025, the Bitcoin market calmed down due to the influence of institutional investors.

Decreased Volatility in the Bitcoin Market in 2025

As of 2025, Bitcoin market volatility has visibly decreased. The primary reason for this change is the use of derivative products by institutional investors to generate returns on their unused assets.

The annualized 30-day implied volatility for Bitcoin dropped from 70% to 45%, demonstrating a significant reduction. The preference of institutional investors for the covered call strategy has supported this situation.

These preferences have led to put options (bear options) trading at a continuous premium compared to call options (bull options) due to the increased demand for hedging strategies against bear markets.