Bitcoin options markets are signalling extreme investor caution, with traders paying record premiums for downside protection despite stabilising spot prices.
The put/call open interest ratio reached 0.84, its highest level since June 2021, indicating a strong preference for protective put options over bullish call positions.
VanEck analysts said bitcoin’s 30-day average price fell 19% while realised volatility dropped from around 80 to just above 50, reflecting reduced speculative activity.
“Relative to spot volume, put premiums reached an all-time high of roughly 4 basis points,”
The report noted, highlighting elevated demand for hedging against further losses.
Traders spent approximately $685 million on put options over the past month, compared to $562 million in call premiums, reinforcing the defensive market positioning.
Despite this, historical data suggests such extreme fear levels have often preceded rebounds, with average gains of 13% over 90 days and 133% over 360 days.
The findings suggest bitcoin may be approaching a potential turning point, though weak on-chain activity and cautious sentiment continue to weigh on near-term momentum.
At the time of reporting, Bitcoin price was $69,230.70.