Bitcoin Options Market: Cautious, Not Panic


As we mentioned in our news article about the Bitcoin price last night, the options market is sending a more cautious signal. When the Bitcoin price briefly dipped below $60,000, traders rushed to buy put options as a protective measure. Reports indicate that downside hedging amounted to approximately $1.2 billion around strike prices ranging between $55,000 and $60,000.
The broader options market remains defensive in orientation. The open interest for Bitcoin options is approximately $34 billion ahead of the expiration of major quarterly contracts with a notional value of about $9.3 billion. Put options continue to trade at a premium of over 10% over call options, and the weekly options skew remains heavily tilted towards downside protection.
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