Bitcoin Options: Volatility Spikes and Recovery Signals

Between October 6, 2025, and February 6, 2026, bitcoin prices corrected approximately 50%. An acute phase of this sell-off took place between January 29 and February 6, 2026, during which prices dropped from ~$90,000 to ~$60,000. Market uncertainty at the peak of this move was reflected in the 25-delta implied volatility (IV) for both calls and puts; on February 5, these figures climbed to 75% and 95%, respectively, marking the highest readings since 2022. Although 25-delta put IV has since softened, it remains elevated relative to the 2025 average of 46%.