The Bitcoin options market continues to signal a bearish hedge despite the gradual normalization of volatility.
Alyssa Davidson
Posted: July 3, 2026 9:30 AM Updated: July 3, 2026 10:10 AM
Correction and fact check date: July 3, 2026, 9:30 a.m.
briefly
Bitcoin options have seen increased volatility and sustained put demand, indicating cautious sentiment despite easing downside hedging pressure.
Analysis from blockchain analytics firm Glassnode shows that the Bitcoin derivatives market is experiencing a gradual risk repricing as BTC continues its downtrend. According to the report, options data suggests a shift in the way investors evaluate volatility, downside protection, and the probability distribution of near-term price movements.
Market indicators such as DVOL have been trending upward with BTC falling, reflecting the expected increase in future volatility. However, implied volatility remains well below levels typically associated with major market stress events, suggesting that while uncertainty is increasing, conditions have not reached historical extremes.
Even though the price has partially recovered from around $58,000, the skew indicator remains positive, indicating continued demand for put options over call options. This points to continued interest in downside hedging, albeit with a reduced degree of defensive positioning compared to earlier periods of heightened market stress.
At the same time, BTC continues to trade in negative gamma territory, where dealer hedging activity can lead to heightened price volatility. The overall structure of the options market remains cautiously defensive due to higher implied volatility and continued put demand.
Option Positioning Signal Continued Downtrend Hedging Demand
Data from Deribit shows that put options continue to trade at a premium to call options, reflecting ongoing demand for protection against price declines. The one-week 25-delta put call skew was recorded at around 16%, indicating a higher implied volatility premium for put options. That’s still up, but down from about 25% 10 days ago, according to Velo’s data.
A similar pattern is observed across longer maturities, with 1-month, 3-month, and 6-month skews also showing put premiums of around 10% or more. This suggests that downside risk concerns remain embedded across the term structure, even as long-term investors, including ETF participants and holders, appear to have resumed accumulation.
Options flow data, including large block trades typically executed over-the-counter by institutional participants, continues to reflect positioning consistent with range-bound expectations rather than strong directional bullish convictions.
Market liquidity conditions may be affected by the Independence Day holiday closure. This is expected to reduce trading activity and potentially increase the likelihood of sharp price movements while the market environment becomes thinner.
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About the author
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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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.
more articles