Bitcoin and Ethereum have experienced a significant drop in short-term volatility, reaching multi-year lows, according to data from Deribit. Bitcoin's 30-day implied volatility index (DVOL) has fallen to 40, its lowest since October 2025, while Ethereum's DVOL has decreased to 60, a level not seen since September 2024. This decline suggests a shift in market sentiment, with investors perceiving a lower probability of sharp price swings despite ongoing macroeconomic pressures.
The reduced volatility is attributed to several factors, including the institutionalization of Bitcoin through spot ETFs, increased liquidity in the options market, and the pricing in of macroeconomic uncertainties. Ethereum's volatility, typically higher due to its diverse ecosystem, also reflects this trend, indicating a period of market calm. Analysts view this as a sign of market maturation, with sophisticated risk management tools contributing to the stabilization of price movements.
Bitcoin and Ethereum Volatility Hits Multi-Year Lows Amid Market Maturity
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