Bitcoin Options Point to Spiking Volatility Despite Summer Slowdown

Despite a typical summer slowdown typically seen in crypto and equities markets, options trading indicates higher volatility for Bitcoin (BTC) in June and July. Kaiko analysts suggest this unusual behavior may result in a more turbulent period ahead. This prediction is based on historical data showing that Bitcoin’s trading volume tends to drop during the third quarter of each year, except in 2022 when market turmoil followed bankruptcies like Celsius Network and Three Arrows Capital. Current options markets are already pricing in higher volatility, as June 27th expiry options have seen a surge in volume, with traders expecting prices to reach new highs. This bullish sentiment is fueled by several converging factors such as the Federal Reserve’s upcoming meeting, potential Trump tariffs, and anticipated crypto legislation before Congress breaks for summer. However, this divergence from the usual seasonal trends could signal an increasingly volatile market.