KEY TAKEAWAYS
- Bybit’s latest report reveals a significant decline in realized volatility for major cryptocurrencies like BTC, ETH, and SOL.
- Despite low realized volatility, implied volatility remains high, indicating strong demand for risk protection.
- Bitcoin’s skew turned bearish amid inflation concerns, while ETH showed a bullish trend in options markets.
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released its latest Bybit X Block Scholes Options Volatility Report. The report, created in collaboration with Block Scholes, highlights a significant decline in realized volatility across major cryptocurrencies, a bearish shift in bitcoin skew, and strategic insights into options positioning.
The report underscores a market dynamic where realized volatility for bitcoin (BTC), ether (ETH), and solana (SOL) reached historic lows in early September. This occurred even as macroeconomic headwinds and monetary policy shifts added pressure to global markets. Despite the subdued realized activity, implied volatility remains elevated, indicating ongoing demand for risk protection.
Realized Volatilities Collapse to Historic Lows
Despite macro-driven rallies in August and September, realized volatility for BTC, ETH, and SOL fell to historic lows. Seven-day realized volatility dropped to 20% for BTC, compared to a 2025 average of 42%. ETH and SOL also saw declines, with realized volatilities of 40% and 56%, respectively. Implied volatility, however, held at roughly 1.5 times realized levels across all three assets. The report attributes this pattern to structural demand for optionality beyond short-term event risk.
BTC Skew Reflects Bearish Sentiment Amid Inflation Shock
Bitcoin’s all-time high of $124,000 on August 14 quickly reversed following a hotter-than-expected inflation print, driving risk-off sentiment. Options markets reacted with BTC’s 90-day skew turning negative for only the third time this year, reflecting strong demand for downside protection. The bearish skew has persisted through September, while ETH diverged, flipping bullish on out-of-the-money calls. This created the sharpest year-to-date split in skew and volatility between the two assets.
The full analysis is available in the Bybit X Block Scholes Options Volatility Report.
Why This Matters: Impact, Industry Trends & Expert Insights
Bybit’s latest report reveals a significant decline in realized volatility for major cryptocurrencies like Bitcoin, Ethereum, and Solana, alongside a bearish shift in Bitcoin skew, indicating increased demand for downside protection amid macroeconomic pressures.
A recent Economic Times report highlights how September 2025 was marked by sharp volatility and a downturn in the crypto markets, driven by macroeconomic pressures and regulatory changes. This aligns with the report’s findings of historic lows in realized volatility despite macroeconomic headwinds.
As per insights from Finance Magnates, Bitcoin’s current low volatility suggests a potential imminent surge, echoing past periods of stability followed by sharp moves. This supports the report’s indication of ongoing demand for risk protection and the potential for significant market shifts.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
