Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFinanceCryptocurrencyNewsBitcoin volatility hits nine-month low as Crypto takes breatherThe Bitcoin Volmex Implied Volatility Index fell to 36.11 Monday in SingaporeAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.This illustration photograph taken on November 22, 2024 in Istanbul shows a coin imitation of the Bitcoin crypto currency arranged beside a screen displaying a trading chart. Photo by OZAN KOSE/AFP via Getty ImagesBitcoin’s expected volatility has fallen to the lowest level in nine months, as subdued trading and a shift in speculative interest away from the largest cryptocurrency dampen demand for options protection.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe Bitcoin Volmex Implied Volatility Index fell to 36.11 Monday in Singapore, its lowest since September last year and close to its lowest since 2023. The index reflects the market’s expected 30-day volatility in Bitcoin, derived from real-time crypto options prices.The decline comes as Bitcoin struggles to break above US$80,000, trading around US$77,000 today and still down nearly 40 per cent from its record high above US$126,000 set in October. U.S. spot-Bitcoin exchange-traded funds have seen net outflows of about US$1 billion so far in May, reversing a two-month stretch of net inflows and adding to signs that investor demand has cooled.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“Bitcoin volatility is nearing all-time lows,” said Caroline Mauron, co-founder at Orbit Markets. “Retail interest is understandably going elsewhere to take advantage of other trading opportunities, as also seen from ETF outflows data.”That stands in contrast with a broader rally across risk assets: U.S. stocks climbed to record highs on hopes that a deal to end the U.S.-Iran war is nearing, while South Korea’s Kospi and Taiwan’s equity market have also touched peaks, buoyed by demand for AI and semiconductor exposure.“ETF flows have been negative for Bitcoin but the overall picture for risk has been positive for markets and I think those two factors have been canceling out each other,” said Damien Loh, chief investment officer at Ericsenz Capital.Bitcoin’s low implied volatility reflects a recurring pattern this cycle, where any pickup in price swings has quickly attracted volatility sellers, keeping options premiums suppressed.Rajiv Sawhney, head of international portfolio management at Wave Digital Assets, said volatility selling has been one of the defining trades of recent months, with investors repeatedly stepping in after spikes and making breakouts harder to sustain.“Bitcoin does not have an inherent yield, so for long-term holders, miners, sovereign investors and larger funds, selling volatility has become a way to generate income from their holdings,” he said.The broader macro backdrop is also weighing on Bitcoin activity. Speculative money has gravitated toward artificial intelligence and memory stocks, Sawhney said, leaving less “hot money” in crypto. Cooler trading volumes typically suppress realized volatility, in turn pushing implied volatility lower. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.