Glassnode: Bitcoin Options Market Shows Initial Selloff Shock Has Been Absorbed
Blockchain analytics agency Glassnode has launched new insights into Bitcoin’s choices market, indicating that merchants stay cautious regardless of the cryptocurrency recovering after briefly falling beneath its February low and rebounding from its June low.
According to the information, the current selloff triggered a short-lived improve in volatility expectations. At-the-money implied volatility (ATM IV) for one-week choices rose sharply, with one-week implied volatility briefly reaching 65% as Bitcoin broke beneath its February assist stage. However, the rise rapidly subsided, with short-term volatility returning to round 40%, suggesting market individuals considered the decline as a contained occasion somewhat than the beginning of a broader market disruption.
Demand for draw back safety additionally surged throughout the selloff. One-week choices skew, a measure of investor choice for protecting put choices over calls, climbed from 12% to twenty-eight% as merchants sought hedges towards additional declines. The indicator later retreated to roughly 12%, indicating that the fast rush for defense has eased.
Glassnode’s evaluation confirmed that the hole between implied and realized volatility has largely disappeared. One-month realized volatility elevated from 27% to 41% following the market decline, whereas one-month implied volatility fell again towards 41%. This convergence means that precise market actions are actually intently aligned with what choices merchants had been pricing in.
Options Positioning Continues to Signal Caution
Despite the normalization in volatility metrics, choices circulate continues to replicate a defensive market stance. Over the previous seven days, put choices accounted for about 30% of premium traded, in contrast with 20% for name choices. Similar exercise has been noticed over the past 24 hours, indicating that demand for draw back safety stays elevated even after the market stabilized.
The report additionally highlighted the positioning of gamma publicity within the choices market. The largest focus of damaging gamma is at present positioned across the $65,000 stage, barely above Bitcoin’s spot value close to $63,800. Additional brief gamma positions are clustered between $65,000 and $70,000, a setup that might amplify upward value actions by supplier hedging exercise if Bitcoin reclaims these ranges.
Overall, Glassnode concluded that the market has largely absorbed the preliminary shock from the current decline. While volatility and hedging demand have normalized from their peak ranges, choices positioning continues to replicate a cautious outlook, with merchants sustaining defensive publicity regardless of Bitcoin’s restoration.
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