Bitcoin's 30-day implied volatility hits a 36% long-term low; experts warn of misinterpreted risk

ME News reports that on August 6 (UTC+8), Bitcoin’s 30-day implied volatility dropped to 36%, reaching its long-term support low, while price traded in a narrow range below $65,000. Adam Haeems, Head of Asset Management at Tesseract Group, warned, “When market volatility is low, traders can establish directional positions and hedges at relatively low cost. If the market subsequently breaks through a concentration of positions, these hedging activities may accelerate the trend.” “The practical implication is that low volatility should not be mistaken for low risk. Therefore, extreme caution is warranted when using leverage, particularly when trading volume and market depth are low.” Regarding market sentiment, Paul Howard, Senior Director at Wincent, noted that demand for put options has clearly weakened, but demand for call options remains insufficient. Glassnode stated, “This asymmetry is not due to increased put buying, but rather the disappearance of call buying. No one is willing to pay for upside, nor are they willing to pay much to hedge against downside.” Paul Howard believes the next major catalyst will be “some positive regulatory news, such as the Clarity Act, which could manifest as institutional ETF inflows.” (Source: PANews)