The implied volatility of Bitcoin options this week exceeded 97%, which has tripled from the low of about 30% in October last year.

On January 20th, Glassnode data showed that the implied volatility of Bitcoin options has reversed since mid-October last year. Since May 2021, as market interest weakened during the bear market, implied volatility has been declining for many years. However, this downward trend seems to have reversed recently, with implied volatility more than tripling from its low point in October, exceeding 97% this week.

As spot ETF products open up new doors for institutional and retail capital, the volatility characteristics of Bitcoin may also begin to evolve. It is also worth noting that the infrastructure, liquidity, and depth of the options market have significantly matured by 2023, with open interest contracts currently on par with the futures market.