Bitcoin Options Prices Drop to Five-Year Low as Investors Hedge with Bullish Positions

Bitcoin options prices have fallen to a five-year low, with the near-term implied volatility at 33.5%, more than 4 percentage points lower than the actual volatility, indicating that options are relatively cheap. Over the past week, the skew of Bitcoin options has decreased by nearly 3 percentage points, with traders focusing on buying put options that expire in October with strike prices of $78,000 and $80,000, with individual large trades reaching up to $204 million. 10x Research believes this indicates that investors overall still hold long positions while hedging downside risks through options, rather than fully turning bearish. In contrast, the Ethereum options market shows different signals, with its largest corporate buyer indicating it will stop buying in the coming weeks, and options trading is primarily dominated by sellers of call options, with implied volatility higher than actual volatility.

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