Bitcoin Implied Volatility Holds Steady as Institutionalization Reshapes Risk and Perpetuals Turn Bullish

COINOTAG News, citing Bloomberg, reports that Bitcoin has retraced as much as 36% from its early-October peak, yet implied volatility remains in a relatively tight range. This trajectory aligns with a gradual shift toward institutional adoption and a reconfiguration of the crypto market’s risk-transmission dynamics.

On the derivatives frontier, sentiment appears to have reversed from a bearish posture. Data from Coinglass show sustained demand for long exposure in Bitcoin perpetual contracts, with open interest at moderate levels and funding rates turning positive, signaling renewed bullish momentum.

Deribit metrics indicate robust bullish options interest at a $100,000 strike, while the prior week leaned toward downside hedges around $80k–$85k. Spencer Hallarn, Head of OTC Trading at GSR, notes a notable decline in speculative longs and perpetual funding, potentially setting the stage for the next leg higher.