According to glassnode, implied volatility has declined across the curve, signaling weaker demand for near-term hedges and upside leverage while the market prices more contained price action (source: Glassnode, Dec 19, 2025). ATM IV is now around 44% across tenors, more than 10 vol points lower than recent highs, indicating a broad-based volatility compression (source: Glassnode, Dec 19, 2025). Lower IV translates into cheaper option premiums versus recent weeks, reducing hedging costs for buyers and premium income for sellers based on standard options pricing mechanics (source: Glassnode, Dec 19, 2025; source: Black-Scholes options pricing). With upside leverage demand easing, short-dated calls are priced more conservatively, and positioning tends to favor range-bound strategies over breakout bets unless volatility re-expands (source: Glassnode, Dec 19, 2025). Cross-tenor softness suggests traders should benchmark strategies against realized volatility and term exposure as the curve prices tighter ranges (source: Glassnode, Dec 19, 2025).

According to @glassnode, DVOL—described as a single-number snapshot of implied volatility—fell immediately after the referenced event. Source: @glassnode on X, Dec 12, 2025; glassno.de/4pFLFIS. This drop often indicates volatility supply returning and less urgency among traders to hedge or seek upside exposure, a key shift for crypto options positioning. Source: @glassnode on X, Dec 12, 2025; glassno.de/4pFLFIS.

According to @glassnode, off-chain crypto market signals were mixed this week, with spot and ETF indicators improving. According to @glassnode, futures and options weakened as leverage and hedging demand declined. According to @glassnode, strength currently sits in spot and ETF, while derivatives continue to soften.

According to @glassnode, earlier peaks in April 2024 and January 2025 aligned with high-volatility environments, while the recent 125K top emerged under notably calmer conditions similar to mid-2023, indicating shifts in volatility are reshaping market expectations and demand for downside protection, source: Glassnode on X, Dec 5, 2025. According to @glassnode, the firm will soon publish this metric on the Glassnode platform, enabling direct tracking of volatility regime changes and associated hedging demand, source: Glassnode on X, Dec 5, 2025.

According to glassnode, the Options 25 Delta Skew indicates that short-term puts for Bitcoin (1W, 1M) are becoming increasingly more expensive compared to equivalent calls. This reflects a sustained demand for hedging, suggesting elevated uncertainty in Bitcoin's price action, which is a critical factor for traders to consider.