Analysis: Bitcoin volatility has fallen to a nine-month low, and the cryptocurrency market has entered a period of respite

According to Bloomberg, Bitcoin volatility has dropped to a nine-month low, and the market is entering a breather period. During the Asian trading session, the Bitcoin Volmex implied volatility index fell to 36.11 on Monday, the lowest since September of last year, approaching the lowest level since 2023. This index reflects the market's expected 30-day Bitcoin volatility through real-time cryptocurrency options prices. Additionally, the U.S. spot Bitcoin ETF saw a net outflow of about $1 billion in May, reversing a trend of net inflows for two consecutive months, indicating a cooling of investor demand.

Caroline Mauron, co-founder of Orbit Markets, stated that retail interest is shifting towards other trading opportunities. Rajiv Sawhney, head of international portfolio management at Wave Digital Assets, noted that selling volatility has become one of the hallmark trades recently, and for Bitcoin, which lacks intrinsic yield, long-term holders, miners, and large funds are generating returns from their positions by selling volatility.