Bitcoin’s implied volatility has dropped to a year-to-date low, and the market reacted indifferently to Friday’s CPI data.

According to CoinDesk, the U.S. March CPI data will be released on Friday. Markets expect the annual growth rate to jump from 2.4% in February to 3.4%, yet Bitcoin markets have reacted calmly. The options market currently prices in only about a 2.5% volatility range, and the BVIV Index (30-day implied volatility) has fallen to 46.5%, its lowest level since January 31. Traders broadly view this release as non-eventful. This CPI report is drawing heightened attention primarily due to energy shocks triggered by the Iran conflict—U.S. gasoline prices surged above $4 per gallon in March, the first time since August 2022. Multiple analysts note that softer-than-expected data could revive rate-cut expectations, while hotter data would reinforce the “higher-for-longer” interest-rate narrative—exerting an asymmetric impact on crypto markets.