Bitcoin Options Traders Show Low Volatility Expectations Amid Rising On-Chain Risk

Bitcoin Options traders are currently pricing in low implied volatility, but on-chain data indicates potential for increased price swings.

Key Findings

Bitcoin's At-The-Money Implied Volatility (ATM IV) has been trending lower.
Glassnode reports a rise in Realized Supply Density, indicating significant buying activity near current prices.
High Realized Supply Density can lead to amplified market sensitivity and increased volatility risk.
Despite rising on-chain volatility signals, traders in the Options market do not anticipate high volatility soon.
Historically, low volatility pricing may precede periods of heightened volatility.

Current Bitcoin price is approximately $108,800, reflecting a 3.5% increase over the past week.