BIT: Bitcoin Options Market Shifts to Defensive, Downside Protection Demand Significantly Increases

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Deep Tide TechFlow News, March 23 — BIT (formerly Matrixport) released a chart today showing that "Bitcoin spot prices have not fully reflected this change, but the options market has responded — implied volatility has risen significantly, and demand for downside protection continues to grow. Over the past week, put options accounted for 29% of Bitcoin options trading, and Ethereum even higher at 37%, with positions clearly shifting toward defense.

This repositioning reflects traders’ deep concerns about geopolitical tensions: inflation pressures may persist longer, affecting not only oil prices but also spreading to a broader range of growth-sensitive assets.

Therefore, it remains crucial to continuously monitor market position changes, especially in the options market. Compared to spot, options tend to reflect risk appetite shifts among fast-money accounts and tactical funds earlier. Although overall trading volume remains relatively low, market participants are not relaxing but actively managing tail risks. Notably, Bitcoin’s performance continues to outperform other risk assets."

BTC3,34%
ETH4,61%
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