Bitcoin and Ethereum’s 30-day implied volatility indices have fallen to multi-month lows, signaling a shift toward range-bound markets rather than large directional moves. Deribit DVOL has slipped to around 40%, the lowest since October last year, while ETH DVOL is below 60%, the lowest since September 2024. The gap between ETH and BTC DVOL narrowed to about 16 points, the tightest spread since April 2025.
Analysts say the volatility compression reflects diminishing near-term uncertainty as hedging activity wanes. Traders are using range-bound strategies to provide or absorb volatility, with a broad unwind in Deribit calls and puts indicating a volatility-selling stance rather than directional bets.
Ethereum’s volatility remains higher than Bitcoin’s, implying ETH could still lead moves if risk appetite returns. The market has also seen a surge in interest around privacy-focused assets like Monero, which jumped above $600 and touched a new high, underscoring broader demand for non-sovereign assets amid shifting sentiment. If optimism improves, some analysts see Bitcoin approaching $120,000 in the coming months, though the overall mood remains cautious as traders wait for clearer signals.
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