Bitcoin Volatility Hits Multi-Year Lows While Options Market Hedges Correction Risk

Bitcoin spot ETFs see $754M net inflows as price holds near $64,700. Options traders hedge downside near $62,000 ahead of U.S. jobs data, despite bullish call dominance.

Woofun AI data shows that Bitcoin volatility has declined to multi-year lows, with the Deribit DVOL index dropping to 35 from a peak of 90 earlier this year. Spot Bitcoin ETFs recorded cumulative net inflows of approximately $754 million, supporting prices around $64,700.

However, the options market is positioning for downside protection, with heavy focus on strike levels near $62,000 and $63,000.

Call options represent 60.7% of total open interest, indicating a long-term bullish outlook, though recent activity emphasizes short-term hedging. Traders are monitoring upcoming U.S. employment data, with expectations for non-farm payrolls to rise by 97,500 in July and unemployment to remain at 4.2%. Divergent macroeconomic outcomes could disrupt current market balance, with low liquidity amplifying potential price fluctuations.