According to glassnode, implied volatility has declined across the curve, signaling weaker demand for near-term hedges and upside leverage while the market prices more contained price action (source: Glassnode, Dec 19, 2025). ATM IV is now around 44% across tenors, more than 10 vol points lower than recent highs, indicating a broad-based volatility compression (source: Glassnode, Dec 19, 2025). Lower IV translates into cheaper option premiums versus recent weeks, reducing hedging costs for buyers and premium income for sellers based on standard options pricing mechanics (source: Glassnode, Dec 19, 2025; source: Black-Scholes options pricing). With upside leverage demand easing, short-dated calls are priced more conservatively, and positioning tends to favor range-bound strategies over breakout bets unless volatility re-expands (source: Glassnode, Dec 19, 2025). Cross-tenor softness suggests traders should benchmark strategies against realized volatility and term exposure as the curve prices tighter ranges (source: Glassnode, Dec 19, 2025).

According to @Andre_Dragosch, the crypto implied volatility index DVOL spiked to almost 65, its highest level since the March 2025 tariff shock, indicating a massive jump in uncertainty and what he characterizes as max fear. Source: @Andre_Dragosch (X, Oct 11, 2025). A DVOL reading near 65 means the market is pricing materially larger 30-day moves and richer option premiums, raising hedging costs and volatility risk for crypto derivatives traders. Source: Deribit (DVOL index methodology).

According to @StockMKTNewz, the VIX Index has moved back into the 14s, indicating a retreat in equity volatility. The VIX tracks 30-day implied volatility derived from S&P 500 options, and lower readings reflect calmer expected equity swings and typically cheaper index option premiums, per Cboe Global Markets. CME Group has documented periods of material correlation between Bitcoin and US equities, making VIX a relevant macro risk gauge that crypto traders monitor alongside BTC and ETH volatility regimes.

According to @EricBalchunas, iShares Bitcoin Trust (IBIT) volatility fell again this week to 38, matching the volatility level of the Mag 7 ETF (MAGS), based on his chart and commentary; source: @EricBalchunas on X, Aug 8, 2025. Lower volatility readings typically narrow expected move ranges and reduce option premiums under standard options pricing, affecting BTC-linked ETF option strategies and derivatives positioning; source: Cboe Options Institute. Volatility-targeting frameworks commonly increase exposure when measured volatility declines, which can influence allocation to BTC exposure via ETFs during calmer regimes; source: CFA Institute. The parity with MAGS offers a cross-asset reference point for traders tracking volatility compression in BTC ETF markets; source: @EricBalchunas on X, Aug 8, 2025.