Bitcoin Shows Partial Recovery: Options Data Published, What Do They Tell Us?
Blockchain analytics firm Glassnode reports a shift towards more positive sentiment in the Bitcoin options market, with short-term fear indicators receding significantly. The one-week delta skew has dropped to around 7%, indicating reduced recent panic. However, longer-term skew metrics remain elevated at 10-12%, showing sustained investor demand for hedging against medium-to-long-term downside risks.
The volatility pricing dynamic has also changed, with implied volatility (IV) now trading about 10% above realized volatility (RV), meaning the market is again paying a premium for uncertainty, though not at levels indicating severe stress.
Call options continue to dominate open interest, totaling roughly $15 billion versus approximately $10 billion for puts. This persistent call-put spread, even after a major expiry event, suggests structurally stronger upside positioning despite spot market weakness. Recent option flows are concentrated around strike prices between $61,000 and $67,000, with notable demand for $65,000 calls.
Glassnode concludes that while the market shows increasingly constructive short-term prospects with capital inflows painting a more positive picture, investors have not fully abandoned hedging strategies. High demand for long-term downside protection indicates ongoing caution regarding potential downward moves.
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