Volatility compresses as options open interest clusters near round strikes
Dealer hedging around a dense monthly expiry is pinning spot inside an unusually narrow band.
Realised volatility in the two largest digital assets has fallen to the low end of its twelve-month range, even as notional derivatives open interest sits near record levels.
Traders point to positioning. Open interest is heavily clustered at round strikes into the monthly expiry, leaving dealers long gamma and mechanically selling strength and buying weakness as they hedge.
That dynamic typically unwinds at expiry. Whether the subsequent move has direction depends on the spot catalysts that arrive in the same window.
Implied volatility for the following month remains meaningfully above spot realised — an indication that the options market is not treating the current calm as durable.
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