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

Decreased Volatility in the Bitcoin Market in 2025

As of 2025, Bitcoin market volatility has visibly decreased. This change is primarily due to institutional investors using derivative products to generate returns from their idle assets.

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

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