"The Bitcoin Market Calmed Down in 2025 with the Influence of Institutional Investors."

Decreasing Volatility in the Bitcoin Market by 2025

As of 2025, the Bitcoin market has seen a noticeable decrease in volatility. The underlying reason for this change is the use of derivative products by institutional investors to generate returns from their unused assets.

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

These preferences have led to a continuous premium on put options (bearish options) compared to call options (bullish options), following an increased demand for hedging strategies against bear markets.