Record-low 23% upside implied volatility suggests traders have largely stopped positioning for a Bitcoin rally, even as downside protection remains relatively cheap.
Bitcoin options pricing is flashing a bearish signal as skew, the gap in implied volatility between call and put options, reflects fading expectations for upside rather than a rush to hedge against a sharp selloff. Glassnode said the market’s weak tone is being driven by a steep drop in upside implied volatility, which fell to a record low of 23%. Downside implied volatility remains low as well, but not to the same extreme, indicating there are almost no investors currently betting on a Bitcoin rally.