According to ME News, on June 5 (UTC+8), Glassnode reported that as BTC broke below its multi-month range and tested its February low, options market data revealed multiple defensive signals emerging simultaneously. The 1-week implied volatility (IV) surged to nearly 60%, up significantly from around 30% the previous week, with longer-dated volatilities also rising across the board. The 25D skew increased sharply, with the 1-week skew reaching as high as 30% and the 1-month skew climbing above 23%, indicating sustained strong demand for downside protection. Call option premiums have been eroded across both short- and long-dated maturities, while put buying dominated capital flows over the past seven days, accounting for 31.5% of option premium volume. The 1-month IV has risen above 40%, while realized volatility remains near 35%, expanding the volatility risk premium to its highest level in several weeks. Additionally, the maximum negative gamma zone is centered at $65,000, placing BTC within a broad bearish gamma corridor, where market makers’ hedging activities may amplify price volatility. Glassnode concluded that overall options market positioning remains defensively oriented. (Source: BlockBeats)
Glassnode: Bitcoin Options Market Shows Defensive Signals Amid Price Decline
KuCoinFlashShare
Summary
Glassnode noted that Bitcoin’s recent price decline triggered defensive signals in the options market. One-week implied volatility surged to nearly 60%, with longer-dated volatility also rising. The 25D skew reached 30% for one week and exceeded 23% for one month, indicating strong demand for downside protection. Put options dominated funding flows, accounting for 31.5% of premium volume. Options strategy indicators suggest a wide short-Gamma corridor, with the largest negative Gamma at $65,000, likely to amplify price volatility.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.