Glassnode data shows long-term holder supply explains BTC realized volatility more than market cap or open interest, keeping volatility historically low at $78681.76.

According to @glassnode, the past week saw a profitable short gamma strategy as implied volatility (IV) exceeded realized volatility (RV). However, this trend has shifted with an increase in RV during a market selloff, compressing the volatility risk premium (VRP). With VRP now near equilibrium, options are considered more fairly priced, potentially impacting trading strategies.

According to @glassnode, Bitcoin (BTC) has added $732B in new capital this cycle and its 1-year realized volatility is nearly halved, indicating a calmer, larger, and more institutional market per the Q4 Digital Assets Report co-authored with Fasanara Digital; source: Glassnode. Lower realized volatility historically compresses options premiums and dampens realized price swings, a dynamic traders incorporate into derivatives pricing and position sizing; source: Cboe Options Institute.