Analysis: Bitcoin's implied volatility saw its largest increase since November 2025.
PANews reported on January 30th that, according to CoinDesk, Bitcoin's implied volatility recently saw its largest increase since November of last year. Deribit's DVOL index jumped from around 37 to above 44, indicating that traders are rushing to seek downside protection. This volatility rose in tandem with the traditional market volatility index VIX, reflecting a broad-based risk aversion across markets, rather than an isolated event specific to cryptocurrencies.
Despite the volatility, data shows that current implied volatility has not yet reached extreme levels. Bitcoin's implied volatility ranks 36th, meaning the current level is only slightly above its lowest point in the past year; the implied volatility percentile is close to 50, indicating that volatility has been below current levels for about half of the past 12 months. The options market, after more than $1.7 billion in long positions were liquidated, is signaling caution rather than panic, while revealing the fragility of the market's previous positioning structure. Traders are preparing for more volatility to come, with some even setting target prices of $70,000 in the coming weeks.
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