Deribit’s DVOL index, which measures the implied volatility of Bitcoin options, has averaged 42.4 in 2026, its lowest annual reading since it launched in March 2021. On November 4, it stood at 39.6 before falling to 37.03 after the US midterm elections, and it closed below 40 on 54 of the previous 60 days. The decline reflects a four-year slide in expected volatility, with option premiums becoming cheaper relative to their historical levels. A maturing options market and greater institutional participation partly explain the easing, while recent shocks have had little lasting effect. Investors can therefore obtain downside protection more cheaply, although option sellers receive lower premiums in exchange for bearing risk.
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