The implied volatility of Bitcoin options this week exceeded 97%, which has tripled from the low of about 30% in October last year.

Glassnode data shows that Bitcoin options implied volatility has reversed from mid-October last year. Since May 2021, as market interest waned during the bear market, implied volatility has continued to decline for many years, but now this downward trend There appears to have been a reversal in the near term, with implied volatility more than tripling from an October low of around 30% to over 97% this week. Bitcoin’s volatility characteristics may also begin to evolve as spot ETF products open new doors for institutional and retail capital. It is also worth noting that the infrastructure, liquidity and depth of the options market have matured significantly in 2023, with open interest now on par with the futures market.