Volatility Report: February 2026
After months of turbulent price action that followed the October 2025 liquidation event, and a brief capitulation below $60K, BTC’s spot price has been stuck in a narrow range of $65K and $70K.
Time capitulation in spot price
After months of turbulent price action that followed the October 2025 liquidation event, and a brief capitulation below $60K, BTC’s spot price has been stuck in a narrow range of $65K and $70K over the past two weeks. That sideways consolidation around what appears to now be a key corridor for price reflects the current lack of catalysts and conviction in crypto markets.
Given this period of sideways price action, how then are traders currently positioned in options markets?
To provide some context first, short-dated at-the-money implied volatility for BTC options surged to their highest since the collapse of the FTX exchange in November 2022 as BTC flash-crashed below $60K on Feb 5, 2026.
Figure 1. BTC at-the-money options’ implied volatility at several constant tenors. Source: Block Scholes