Bitcoin implied volatility has dropped to its lowest level in nearly two years, but the funding rate indicates that the market remains bullish.

BlockBeats news, on July 3, according to the Deribit Bitcoin Volatility Index, the implied volatility of Bitcoin has fallen to its lowest level in nearly two years. This index tracks the 30-day forward-looking annualized price fluctuation expectations, indicating a significant change in the trading behavior of this largest crypto asset. Over the past two months, Bitcoin has fluctuated within a narrow range of $93,000 to $111,000, contrasting sharply with its historical price movement. Market analysts attribute the decline in volatility to multiple factors, among which the increase in Bitcoin holders engaging in selling call options is particularly crucial. FalconX research director David Lawant pointed out that this strategy of generating revenue by selling call options effectively suppresses drastic price fluctuations. Currently, about 80% of Bitcoin options holdings in the market are concentrated in the strike price range of $100,000 to $120,000, forming a natural price buffer zone. It is worth noting that although volatility has decreased, the funding rate of Bitcoin perpetual futures remains positive, indicating that market bullish sentiment has not changed.