Bitcoin's implied volatility surged significantly on Thursday amid a sharp decline in the options market. The Deribit Bitcoin Volatility Index (DVOL) jumped from around 37 to above 44, marking its largest gain since November 2024. The DVOL, considered the crypto market's "VIX," reflects the options market's expectations for price volatility over the next 30 days. A rise in this indicator suggests traders are paying a higher premium for downside risk, leading to higher option prices and increased risk aversion. This volatility spike occurred amid renewed macroeconomic uncertainty, including the rising risk of a US government shutdown and noise surrounding the future leadership of the Federal Reserve. However, historically, Bitcoin's implied volatility has not yet reached extreme levels. (CoinDesk)