Bitcoin Options Show Increased Downside Protection Demand Amid Macro Risks, Not Clear Price Decline

Key Points

1. Bitcoin options show increased demand for downside protection, with a notable rise in put options signaling hedging against potential price drops below $112,000.

2. The put-to-call ratio of 90% reflects elevated market fear, combined with a +7% skew at Deribit, indicating heightened risk aversion.

3. Macroeconomic factors, such as global trade uncertainties and US Treasury yields dropping from 4.32% to 4.21%, are driving investors to seek downside protection in BTC options.

4. The 7% annualized premium on BTC monthly futures remains within the neutral 5%-10% range, suggesting no extreme bearish or bullish expectations.

5. Market sentiment is influenced by macroeconomic instability, with investors balancing risk and opportunity in their Bitcoin positions.