Bitcoin Options Market Hits Three-Year Extreme as Sentiment Divergence Worsens

The Bitcoin options market has reached its most extreme defensive positioning since the FTX collapse in November 2022, despite no comparable fundamental crisis existing in crypto markets or the broader economy.

Binance Research's weekly report, covering the week ending Feb. 25, 2026, notes that this degree of hedging appears disproportionate, suggesting the market may be closer to a sentiment trough than a precipice.

Bitcoin's Realized Profit/Loss ratio has fallen below 1.0 for the first time since 2023, typically a hallmark of forced capitulation rather than orderly distribution.