Bitcoin Volatility Index Hits Record Lows as U.S. Unveils Strategic Reserve

  • Deribit DVOL shows extreme complacency with only 2.6% readings lower.
  • Strategic Bitcoin Reserve will use forfeited assets and budget-neutral acquisitions.
  • CME gap near $118,300 may hold support before possible rebound.

Bitcoin markets are showing historically low volatility levels as traders display limited demand for protection against downside moves. Glassnode data shows Deribit’s Bitcoin Implied Volatility Index (DVOL) has dropped to near-record lows. 

Only 2.6% of historical readings have been lower. The decline suggests traders see little need to hedge against sudden declines.

Analysts interpret this as a sign of extreme market complacency. They caution that similar conditions have previously preceded large price swings. Historical patterns indicate that suppressed volatility can lead to abrupt changes when sentiment shifts.

U.S. Treasury Announces Strategic Bitcoin Reserve

On August 14, 2025, Treasury Secretary Scott Bessent confirmed plans for a Strategic Bitcoin Reserve. The initiative follows President Trump’s March Executive Order. 

According to Bessent, the reserve will be funded with Bitcoin forfeited to the federal government. The Treasury will also explore budget-neutral methods to acquire additional Bitcoin. 

This approach aims to expand holdings without creating new financial burdens. The move aligns with the administration’s goal to make the United States a “Bitcoin superpower of the world.” The announcement has been met with a positive reaction from the crypto community. 

CME Gap Zone Holds Short-Term Focus

The Bitcoin CME Futures chart shows price action near a highlighted gap between $118,300 and $119,600. BTC fell sharply into this zone before consolidating. Analysts suggest this gap may act as a short-term support area. 

Bitcoin CME Futures 1h Price Chart Source: TradingView

A chart marker indicates a potential retest of the lower bound. If support holds, price could rebound toward $121,000. Traders closely track CME gaps, as they often attract price movement to “fill” the gap. 

Current consolidation suggests traders are assessing whether this zone will prompt a bullish reaction or open the door to further downside.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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