Bitcoin Shows Signs of a Partial Recovery: Options Data Released—What Does It Tell Us?

Blockchain analytics company Glassnode stated that investor sentiment in the Bitcoin (BTC) options market has recently shifted to a more positive outlook, but demand for hedging against long-term downside risks remains high.

According to Glassnode’s analysis, indicators reflecting short-term fear in Bitcoin options have seen a significant easing. The one-week 25-delta skew indicator has fallen to approximately 7 percent, suggesting a substantial decrease in the recent panic in the market.

In contrast, the skew ratio remains around 10 to 12 percent in longer-term timeframes. Glassnode stated that this indicates investors are maintaining hedging positions against medium- to long-term downward movements, even though they have become more optimistic in the short term.

A shift is also being observed in volatility pricing in the Bitcoin options market. Implied volatility (IV) has risen to approximately 10 percent above realized volatility (RV). This change, following weeks where realized volatility consistently exceeded implied volatility, indicates that the market is once again paying a premium for uncertainty. However, according to Glassnode, current pricing is not yet at a level that would indicate stressful market conditions.

In terms of open interest, call options continue to dominate. The size of open interest in Bitcoin call options is approximately $15 billion, while in put options it is around $10 billion.

Glassnode noted that the persistence of the spread between call and put open positions, even after a major reset due to a large expiry date, indicates that upward positioning remains structurally stronger despite weakness in the spot market.

Recent option premium flows appear to be concentrated particularly around strike prices between $61,000 and $67,000. Strong buying is particularly noticeable in call options with a strike price of $65,000, while put selling has also increased.

According to Glassnode, this combination suggests that investors are beginning to take a more constructive and aggressive stance in the short term. However, the continued demand for put positions below the spot price indicates that hedging against downside risks remains active.

The company summarized its assessment as follows: the Bitcoin options market is showing an increasingly positive outlook, but investors have not completely abandoned hedging strategies. While short-term fear is diminishing, call options continue to dominate the market, and new capital inflows paint a more positive picture. Conversely, the high demand for long-term hedging indicates that investors are maintaining a cautious stance against potential downward movements.

*This is not investment advice.