Bitcoin News

Story: Bitcoin Volatility Triggers Demand for Downside Protection

By Dan Saada

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Increased Demand for Downside Protection. Traders have been hedging against potential downside risks by seeking downside protection through…

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The Volatility Smile and Delta Skew. Glassnode further tracked this trend using the Volatility Smile and the Options Delta 25 Skew…

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Long-Term Holders Remain Calm. Despite the increased caution in the options market, long-term Bitcoin holders appear relatively…

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Bitcoin’s Current Price Action. As of now, Bitcoin is trading at $84,068, reflecting a 2% drop over the past 24 hours.

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Bitcoin’s recent volatility has left investors scrambling for downside protection amid ongoing market uncertainty.

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Traders have been hedging against potential downside risks by seeking downside protection through options contracts, particularly put options.

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Market analytics firm Glassnode highlighted this shift in sentiment, noting a marked increase in the implied volatility premium for put options.

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Additionally, the Delta Skew, which measures the difference in implied volatility for puts and calls with the same delta, shows that put premiums have increased significantly…

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The spending rate among long-term holders remains notably low, suggesting that these investors are either confident in Bitcoin’s ability to recover or are patiently waiting for…

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As of now, Bitcoin is trading at $84,068, reflecting a 2% drop over the past 24 hours. The 23% decline from its all-time high has contributed to a slowdown in capital inflows and…

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In conclusion, while Bitcoin’s price volatility has created a sense of unease among short-term traders, long-term holders remain largely unaffected, highlighting a potential…

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