Matrixport's latest report highlights a shift in trader behavior as Bitcoin's recent volatility subsides. After a sharp decline from $85,000 to $60,000, Bitcoin has stabilized around $66,000. This price movement initially drove implied volatility for March 2026 options to a peak of 65%, reflecting heightened demand for downside protection. However, implied volatility has since eased to 50%, indicating that traders are unwinding crash hedges and reducing overall market positions. The report notes that the crypto market is at a critical juncture, with elevated volatility, low sentiment, and declining liquidity. Despite an improved macro environment, crypto prices have yet to reflect these changes, suggesting potential for significant market moves ahead. Traders' reduced participation and lighter positions could signal the onset of major directional shifts.