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In short
- Bitcoin’s volatility has dropped, but the data shows that traders are protecting against a move to the downside.
- The number of bets on Bitcoin falling, compared to those rising, is at a level not seen since 2021.
- However, this level of “safety” often indicates that the bottom is close.
Bitcoin is Volatility has eased as the price has stabilized around $70,000, but traders are still paying for lower protection, according to a new report from the investment company VanEck.
Bitcoin realized instability, or instability depending on the movement actually saw the price, it has fallen from 80 to 50 in the last month, VanEck notes. But even though prices are stabilizing, traders are still cautious and are paying more to keep a position that pays when Bitcoin goes down.
“Businesses continue to pay high premiums for security,” the report says. “The total amount paid for shopping is down 24% on a monthly basis, but at $685 million in the last 30 days, it remains more than 77% of what is seen on a monthly basis since the beginning of 2025.”
In other words, while the total dollar amount that is being paid for Bitcoin has fallen, it is still above monthly levels.
“Even as volatility eases, investors continue to allocate more capital to reduce risk,” VanEck wrote.
Not all money is paid at the required price, but the put/call ratio—which compares the number of bets on Bitcoin going down and Bitcoin going up—jumped to 0.84 and about 0.77. VanEck says these indicators are the highest since 2021, and they indicate “greater demand in the medium term compared to the bullish position.”
But relief may be lurking in Bitcoin bull data.
“When the stock market has been volatile in the past, Bitcoin tends to recover,” the report says. “The current defense, while reasonable given recent prices, has been around the market longer than the peak.”
In addition, long-term holders abandon their strategies and BTC “seems to be lagging” as Bitcoin is transferred between those with a minimum of 1 year and more than fell on a month-to-month basis.
The top cryptocurrency is down about 1% in the last 24 hours, but is up more than 5% in the last month, recently changing hands at $69,891.
Meanwhile, it remains about 45% off its high of $126,080 set last October.
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