Glassnode: Bitcoin Options Market Shows Initial Sell-Off Shock Has Been Absorbed

by
Alyssa Davidson

Posted: June 12, 2026 9:25 AM Updated: June 12, 2026 9:25 AM

by Anastasia Oh

Edit and fact check date: June 12, 2026, 9:25 AM

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Blockchain analytics firm Glassnode has released new insights into the Bitcoin options market, indicating that traders remain cautious despite the cryptocurrency recovering after briefly falling below its February lows and then rebounding from its June lows.

The recent sell-off has triggered an increase in volatility expectations in the near term, according to the data. At-the-money implied volatility (ATM IV) for one-week options increased sharply, with one-week implied volatility briefly reaching 65% as Bitcoin broke below its February support level. However, the increase quickly subsided as short-term volatility returned to around 40%. This suggests that market participants viewed the decline as a contained event rather than the beginning of broader market turmoil.

Demand for downside protection also surged during the sell-off. One-week options skew, a measure of investors preferring protective put options over call options, rose from 12% to 28% as traders sought hedges against further declines. This indicator has since retreated to around 12%, indicating that the movement for immediate protection has eased.

Glassnode’s analysis shows that the gap between implied and realized volatility has largely disappeared. Following the market decline, one-month realized volatility increased from 27% to 41%, while one-month implied volatility decreased to 41%. This convergence suggests that actual market movements now closely match what options traders are pricing.

Option positioning continues to send cautionary signals.

Despite the normalization of volatility indicators, options flows continue to reflect a defensive market stance. Over the past seven days, put options accounted for approximately 30% of premium trading, while call options accounted for 20%. Similar activity has been observed over the past 24 hours, indicating that demand for downside protection remains high even after the market stabilizes.

The report also highlighted the position of gamma exposure in the options market. The greatest concentration of negative gamma is currently located near the $65,000 level, which is slightly higher than the Bitcoin spot price near $63,800. Additional short gamma positions are concentrated between $65,000 and $70,000, a setup that could amplify upward price movement through dealer hedging activity if Bitcoin recovers to that level.

Overall, Glassnode concludes that the market has absorbed most of the initial shock from the recent decline. While volatility and hedging demand have normalized from record highs, options positioning continues to reflect a cautious outlook, with traders maintaining defensive exposure despite Bitcoin’s recovery.

As a dedicated journalist at MPost, Alisa specializes in the broad areas of cryptocurrency, AI, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.

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