Bitcoin Options Market Hits Three-Year High Amid No Major Crises
The Bitcoin options market has reached an extreme defensive positioning since the FTX collapse in November 2022, according to Binance Research's weekly report. This is despite no comparable fundamental crisis existing in either crypto markets or the broader economy.
Options hedging measures, specifically the BTC options 25-delta skew index, have hit their most negative reading since November 2022. The current environment lacks any equivalent fundamental shock, such as a major exchange collapse or regulatory crisis.
Binance Research notes that this degree of hedging appears disproportionate, suggesting the market may be closer to a sentiment trough than a precipice. This is corroborated by Bitcoin's Realized Profit/Loss ratio falling below 1.0 for the first time since 2023, typically a hallmark of forced capitulation rather than orderly distribution.