"Bitcoin Market Stabilized in 2025 Due to the Influence of Institutional Investors"

Decreasing Volatility in the Bitcoin Market in 2025

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

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

These preferences have led to an ongoing premium for put options (bear options) compared to call options (bull options), driven by increased demand for hedging strategies against bear markets.