Analysis: Bearish sentiment in Bitcoin options has risen to a five-year high, with institutions making large purchases of downside protection

By: rootdata|2026/03/20 10:42:00
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According to VanEck's latest btc-42">Bitcoin on-chain report, Bitcoin options traders' bearish sentiment has risen to its highest level in five years, with the put/call ratio peaking at 0.84 last month, an average of 0.77, placing it in the most bearish 9% range since mid-2019. The total size of open interest in options has surpassed $33 billion.

At the same time, the premium for put options has also reached an all-time high, indicating that institutional investors are buying significant amounts of downside protection. Analysts point out that the current extreme defensive posture may stem from macro factors such as the escalation of the situation in the Middle East, regulatory risks, and liquidity concerns, but there are also views suggesting that historically, peaks in bearish sentiment often signal a market bottom.

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