Yeliz Akmaca 
According to Glassnode data, activity in the Bitcoin options market accelerated after Bitcoin broke above the $100,000 level. Investors are protecting their positions with put purchases, which serve as downside-protection options. Short-term uncertainty has increased; the 1-week implied volatility (IV) has risen to 51 percent, while the 6-month IV reached 48 percent, gaining 3 points over the past two weeks.
Short-Term Volatility and Skew Analysis
The 25-delta skew in the options market, which reflects the gap between downside protection demand and upside expectations, remains negative and continues to rise. Short-term skew in 1-week and 1-month maturities stands at roughly 12.5 percent and 10 percent.
These figures show that investors are prioritizing downside protection rather than betting on upward moves. BTC options also appear fairly priced, meaning implied and realized volatility remain close. This environment offers opportunities for investors holding options to profit from price swings.
Put Demand and Dealer Hedging Behavior
Recent flows show strong dominance from put buyers seeking downside protection. Dealers hedge the risk of selling put options by shorting Bitcoin futures to offset potential losses. If the spot price continues falling, hedging activity will intensify and amplify market volatility.
Investors are particularly targeting 95,000-dollar put options, whose premiums are climbing rapidly, signaling a cautious market tone. Glassnode data confirms the sustained demand around this level.
Market Trends and Strategy Insights
Short-term volatility is rising. Put demand is dominant, and dealer hedging behavior reinforces market turbulence. The options market appears to be preparing for near-term turbulence. Investors can use these dynamics to protect portfolios and capture short-term opportunities. Securing protection against sharp price swings has become increasingly important.
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