According to a recent analysis by investment firm VanEck, Bitcoin’s price has found some stability around the $70,000 mark, leading to a decrease in its volatility. However, traders are still investing heavily in downside protection.
VanEck reports that Bitcoin’s realized volatility—measured by actual price fluctuations—has dropped from 80 to 50 over the past month. Despite this stabilization in prices, traders remain cautious and are willing to pay high premiums for options that profit when Bitcoin declines.
The report states, “Traders continue to pay significant premiums for downside protection.” While the total amount spent on purchasing put options decreased by 24% compared to last month, at $685 million over the last 30 days it remains above 77% of monthly averages since early 2025.
This indicates that although there has been a reduction in total spending on bearish bets against Bitcoin, it is still considerably higher than typical monthly figures.
VanEck further emphasizes that despite falling volatility levels, investors are continuing to allocate substantial resources towards hedging against potential downturns.
The report highlights not only significant premium amounts but also notes an increase in the put/call ratio—which compares bearish bets against bullish ones—reaching as high as 0.84 and averaging around 0.77. These figures represent the highest levels seen since 2021 and suggest an unusually strong demand for protective measures against downward movements relative to optimistic positions.
However, there may be hope for those bullish on Bitcoin based on historical data.
<p“The current level of defensiveness,” says VanEck’s report, “while justified given recent market behavior, has typically coincided with periods closer to market bottoms rather than peaks.”
Additionally, it appears that long-term holders of BTC are becoming less inclined to sell their assets; transfers among holders who have maintained their positions for at least one year have decreased month-over-month.
In terms of performance metrics: while Bitcoin experienced nearly a 1% decline within the last day—it remains up more than 5% over the past month—with its latest trading value at approximately $69,891.
This figure places it nearly 45% below its all-time peak of $126,080 achieved last October.