Huo Xing Finance reports, according to Bloomberg, that Bitcoin volatility has dropped to a nine-month low, as the market enters a period of consolidation. During Asian trading hours, the Bitcoin Volmex implied volatility index fell to 36.11 on Monday, the lowest level since September last year and nearing its lowest point since 2023. The index reflects market expectations of 30-day Bitcoin volatility based on real-time cryptocurrency options pricing. Additionally, U.S. spot Bitcoin ETFs experienced approximately $1 billion in net outflows in May, reversing a two-month trend of net inflows, indicating cooling investor demand. Caroline Mauron, co-founder of Orbit Markets, noted that retail interest is shifting toward other trading opportunities. Rajiv Sawhney, International Portfolio Management Director at Wave Digital Assets, said that volatility selling has become one of the signature trades recently; for Bitcoin, which lacks intrinsic yield, long-term holders, miners, and large funds are generating returns from their positions by selling volatility.
Bitcoin volatility hits nine-month low as crypto market enters a breather period
MarsBitShare
Summary
Bitcoin volatility indicators have reached a nine-month low, with the Volmex index dropping to 36.11 during Asian trading hours on Monday. The 30-day implied volatility reading suggests a pause in market momentum. U.S. spot Bitcoin ETFs saw $1 billion in net outflows in May, reversing previous inflows. Retail traders are shifting toward other opportunities, while selling volatility has become a key strategy for long-term holders and miners.
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