Risk-averse Bitcoin investors are increasing demand for downside protection in options markets amid heightened macroeconomic uncertainty.
Market participants are hedging against potential Bitcoin price declines below $112,000, evident through surging put options activity. Fear indicators show a 90% put-to-call ratio alongside a +7% skew at major derivatives platform Deribit, reflecting one of the highest risk aversion levels observed recently.
The shift toward protective positions coincides with global economic volatility, including U.S. Treasury yields dropping sharply from 4.32% to 4.21% amid trade instability. This macro uncertainty drives capital toward Bitcoin options as a hedge against broader market turbulence.
Despite elevated hedging activity, Bitcoin monthly futures maintain a 7% annualized premium – within the neutral 5%-10% range – suggesting traders aren’t pricing in extreme bearish or bullish scenarios, but rather strategizing positions to balance opportunity against systemic risks.