Crypto asset management company Matrixport stated in its latest research note that the crypto markets are approaching a critical turning point. According to the report, the sharp drop in Bitcoin led to a rapid increase in implied volatility in the options market, followed by a partial pullback.
The Bitcoin price briefly dropped from around $85,000 to approximately $60,000 before stabilizing around $66,000. During the same period, the implied volatility of March 2026 expiry options climbed from around 40% to 65%.
This rebound indicated that investors were showing strong demand for hedging against downside risks during the decline. The subsequent drop in volatility to around 50 percent suggested that excessive “tail risk” hedges were gradually unwinding and short-term pressure had eased somewhat.
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