Recently, Bitcoin's 1-week actual volatility and 1-week option implied volatility (IV) are close to multi-year lows. Such volatility usually indicates that market sentiment is stabilizing or that investors have low expectations for price fluctuations in the short term. This phenomenon has occurred in early 2023 and early 2024, and the subsequent performance of these two points in time also has a certain correlation.
It is worth noting that when volatility is at a low point, it tends to accumulate strength, and once there is a sudden positive or negative news, it may trigger larger fluctuations.
