Bybit X Block Scholes options volatility report (July/August 2025): ETH/BTC volatility steepens in the past month as ETH outperforms and the market assigns a lower volatility to BTC options

Key Highlights:

Our monthly report delves into insights from options volatility to inspire your next crypto move.

• BTC volatility smile hits lowest cycle since 2022: BTC’s volatility smile has flattened, reaching near-record lows by July/August 2025 — signaling reduced expectations for extreme price swings.

• Stepwise price action in BTC & ETH throughout 2025: BTC and ETH have shown “stepwise” behavior — long periods of stability followed by sharp, sudden moves.

• BTC ATHs amid low volatility: Despite hitting multiple all-time highs in July, BTC’s options markets continue to reflect historically low implied volatility.

• ETH/BTC IV ratio steepens further: ETH surged 208% from $2,400 to nearly $5,000, with July/August marking another increase in the ETH/BTC at-the-money implied volatility ratio across maturities.