![[aggregator] downloaded image for imported item #2688](https://mlorw9xlibf1.i.optimole.com/cb:m4SF.335/w:1920/h:944/q:mauto/f:best/https://lykcrypto.com/wp-content/uploads/2025/12/25c8729dc4bc6ee44613a1ae2fd93c6f5facc5de-2854x1404-1-scaled.jpg "Bitcoin Volatility Is Still Compressing, Dimming Year-End Rally Outlook")
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Bitcoin’s volatility indexes are still declining, mirroring those of the S&P 500, bringing a price stability that weakens the case for a year-end rally, according to one analyst.
BTC’s annualized 30-day implied volatility, as measured by Volmex’s BVIV index, has dropped to 49%, nearly reversing the spike to 65% from 46% over the 10 days through Nov. 21, according to TradingView data.
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Implied volatility is an options-based measure that represents the market’s outlook for price swings over a specific period. The drop from 65% to 49% means expected price turbulence over the 30 days has declined from as much as 5 percentage points to 14%.
The VIX index, which represents the 30-day implied volatility in the S&P 500, has also dropped, reaching 17% from 28% since Nov. 20.
According to Matrixport, the so-called volatility compression suggests low odds of a year-end rally.
“Implied volatility continues to compress, and with it, the probability of a meaningful upside breakout into year-end,” the firm said in a market update Wednesday. “Today’s FOMC meeting represents the final major catalyst, but once it passes, volatility is likely to drift lower into the year-end.”
Matrixport’s view aligns with bitcoin’s historical positive price-volatility correlation, though this relationship has gradually shifted toward the negative since November 2024.
On Wall Street, implied volatility compression is typically associated with a bullish reset in the market sentiment.