Bitcoin options implied volatility rises sharply on short-dated puts as traders prepare for potential downside swings: analysts
The implied volatility of short-dated out-of-the-money bitcoin puts on the CME has increased over the past month as traders anticipate greater price volatility and hedge against the potential for further downside movement, analysts say.
 
According to the CF Benchmarks' Bitcoin Volatility Index, the implied volatility for both short-dated puts and short-dated calls was approximately the same at the end of May, prior to the recent market downturn, during which bitcoin's price has fallen by over 14% in the past month. However, CF Benchmarks analysts are now observing a significant increase in implied volatility for near-term puts compared to their corresponding calls.