TechFlow reported on January 19 that Matrixport released a chart today stating, "Despite Trump's renewed threats of tariffs, the implied volatility of Bitcoin and Ethereum has only slightly increased. Since mid-November, overall implied volatility has actually declined noticeably, dropping approximately 18–25 volatility points over the past two months—a significant compression. Options market activity indicates weak momentum for chasing price rallies, while demand for downside hedging has not明显 warmed up.
In this volatility environment, positioning and options strategies are increasingly oriented toward 'yield enhancement': in the case of Ethereum, some seasoned investors are simultaneously accumulating spot holdings while consistently selling call options to collect premiums. Although such strategies somewhat cap upside potential, they are better suited to low-leverage conditions and range-bound price movements, allowing investors to monetize volatility and smooth and enhance portfolio returns—aligning well with the current market environment."
