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).