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Falling Volumes, Falling Vol: What Bitcoin's Options Market Is Telling Us

Since the October Bitcoin peak, BTC option volumes have declined from $8 billion to just $3.5 billion. Overlaying these two time series suggests that option volume will likely continue to fall. Below, we explain how this observation can help traders read the market correctly, and share our favorite option trades for the month. We also provide an update on implied volatility, option flows, and our outlook for where volatility will head next. As always, attached is our 12-page Bitcoin and Ethereum option chart book, including IBIT, with 30 charts.

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