I just noticed an interesting signal in the Bitcoin options market — the premiums for downside protection have hit a new all-time high. According to VanEck, this clearly indicates that there is extreme fear in the market. When investors are so actively hedging their positions, it usually means they are genuinely scared of a correction.

Such a level of fear in options has not been seen in a long time. People are willing to pay serious money for upside protection, which in itself reflects market psychology. When fear reaches such peaks, it is usually either a warning of problems or a sign that the price is already overvalued on the downside.

It's interesting to see how option premiums reflect crowd sentiment. At such moments, fear becomes the most expensive commodity in the market. Should we believe this or is it just panic — that is the question.