Bitcoin The market calmed down significantly throughout 2025 as institutional investors systematically increased their search for returns through derivative products. Generating income through option sales, especially on idle BTCs held in the spot market, has become one of the main dynamics that reduce price volatility. Volatility expectations, which were high at the beginning of the year, gradually decreased as the months progressed and the market gained a more predictable structure. The resulting picture also revealed that cryptocurrencies are starting to get closer to traditional financial practices.
Corporate Return Strategies Pushed Volatility Down
Annualized 30-day implied volatility indicators calculated for Bitcoin throughout 2025 have shown a steady downward trend. Released by Volmex BVIV with Deribit DVOL While the indices were around 70 percent at the beginning of the year, they dropped to 45 percent at the end of the year. These rates, which dropped to 35 percent in September, constituted the numerical equivalent of the calm in the market.
The “covered call” strategies followed by large funds and professional investors were behind this decline. In the spot market BTC or institutional holders of spot Bitcoin ETFs earned premium income by selling call options with high strike prices that represented upside price expectations. OptionThe fact that most of the securities were worthless at the end of maturity provided regular cash flow for the sellers.
options marketIncreasing supply has put continued pressure on implied volatility. While option selling has become a standard return mechanism, the market’s sensitivity to sudden price jumps has also decreased. Founder of Option Insights, who evaluated this process Imran Lakhainstitutional capital’s focus on regular returns by abandoning upside risk has created a structural decline in volatility. emphasized.
Balances Have Been Reversed in the Options Market
Increased corporate interest Bitcoin options marketIt also changed the usual balances in the world. For most of 2025, put options, which serve as downside protection, traded more expensively than call options in both the short and long term. The long-term upward trend, which was frequently observed in previous years, was replaced by cautious and protective positions.
This change did not mean that the market was driven to pessimism. On the contrary, it showed that large investors preferred to insure downside risks while protecting their long-term positions. According to Lakha option curveThis structure, which spreads throughout the country, should be read as a sign of “long and hedged” corporate positions.
On the other hand, a significant portion of the BTC supply in the market is now held in ETFs and corporate treasuries. More than 12.5 percent of all mined Bitcoins are held in these channels, according to OTC trading desk Wintermute’s assessment. speaking on behalf of Wintermute Jake OstrovskisHe stated that generating income through the sale of options on these assets that do not produce natural returns has become the dominant trend of 2025.
