Bitcoin has seen a rapid drop of 10% from its record high to $65,500, leading to a decrease in overall volatility as traders prepare for the Bitcoin options expiry on Friday.

According to data from Greeks.Live, BTC implied volatility has fallen below 70%, indicating less pressure on volatility as observed at the end of last month. Block trading activity has decreased, with whales purchasing call options after the Bitcoin halving. The large margin available to these investors highlights the importance of monitoring their actions.

The data also reveals that 18,000 BTC options are set to expire, with a Put Call Ratio of 0.64, Maxpain point at $68,000, and a notional value of $1.2 billion. This marks the first weekly delivery day after the quarterly delivery.

This week has been challenging for the crypto market, with short-sellers dominating at the $70,000 level. There has been an increase in selling calls and a noticeable drop in implied volatilities (IVs) across major terms.

While Bitcoin is receiving support post-halving, other cryptocurrencies are facing a short-term bear market. Inflows in BTC ETF market have slowed down as the market adjusts to premiums from ETFs.

Inflows into spot Bitcoin ETFs in the past two months have significantly contributed to the BTC price rally to $73,500. Bloomberg ETF strategist Eric Balchunas notes that most of Bitcoin's gains since the ETF launch have occurred after trading hours, leading to price gaps between closing and opening prices. A chart illustrating the difference in intra-day and after-hours returns for $IBIT shows this trend clearly.