Bitcoin volatility is in meltdown, but downside protection still commands a premium

60-second summary

Bitcoin's BVIV volatility index plummeted to its lowest level since 2025, as option demand sharply declined. However, overwriting surged and downside protection remained expensive, defying the market's low volatility expectations. This anomaly suggests investors are still prioritizing risk management, underscoring the enduring demand for protection against potential market downturns, with implications for long-term price stability.