Bitcoin's Implied Volatility Drops to 35% from 60%, But Defensive Positions Dominate

According to Glassnode, Bitcoin's implied volatility has declined significantly in recent days after retesting February lows. One-week implied volatility has fallen from approximately 60% to 35%, with the overall volatility curve shifting downward accordingly, indicating diminished market uncertainty pricing.

Despite the decline, defensive positioning remains dominant. Put-to-call ratios for short-dated options show bearish protection at 28%, exceeding bullish option buying at 24.1%. The 25-delta skew has normalized from extreme panic levels. Additionally, a significant short Gamma concentration zone exists near $62,000 (approximately $1.8 billion notional), which could accelerate volatility expansion if prices move lower, while a protective long Gamma buffer exists near $60,000.