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.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram,YouTube, and Twitter channels for the latest news and updates.

The post Glassnode: Bitcoin Options Signal Rising Downside Risk appeared first on Coin Engineer.