Bitcoin’s implied volatility falls to a nine-month low as market sentiment calms

According to Bloomberg, Bitcoin’s expected volatility has dropped to its lowest level in nine months. The Bitcoin Volmex Implied Volatility Index fell to 36.11 in Singapore on May 26—the lowest since September last year and near its lows since 2023. This index is derived from real-time crypto options prices and reflects the market’s expectation of Bitcoin’s volatility over the next 30 days. Analysts point to thin trading volumes combined with a continued outflow of speculative capital from Bitcoin as the primary drivers behind this decline in volatility.