Bitcoin's market got calmer in 2025 thanks to yield-hungry institutional investors

The BTC market has experienced a steady decline in implied volatility as institutions embraced derivatives to generate extra income. What to know : In 2025, the bitcoin market experienced reduced volatility as institutions increasingly used derivatives to generate yield from idle holdings. The annualized 30-day implied volatility for bitcoin decreased from around 70% to 45% due to institutions selling covered calls. Preference for hedging strategies have led to a persistent premium on bearish put options over calls.