BIT: Bitcoin options market shifts to a defensive stance, with demand for downside protection significantly increasing

SmartContractAuditor · 2026-03-23T11:31:56+00:00

The BIT report indicates that Bitcoin spot prices have not fully reflected market changes, but implied volatility in the options market has risen significantly, showing increased demand for downside risk protection. As traders shift to defensive strategies due to geopolitical tensions and inflationary pressures, the options market has become an important indicator for reflecting risk appetite, with Bitcoin still outperforming other risk assets.

SmartContractAuditor

2026-03-23 11:31:56

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Odaily Planet Daily reports that BIT (formerly Matrixport) released a chart today indicating that the spot price of Bitcoin has not fully reflected this change, but the options market has responded with a significant increase in implied volatility, and downside protection demand continues to rise. Over the past week, put buying accounted for 29% of Bitcoin options trading, while Ethereum was even higher at 37%, with positions clearly shifting toward defense.

This repositioning reflects traders’ deep concerns about geopolitical tensions: inflationary pressures may persist longer as a result, affecting not only oil prices but also spreading to a broader range of growth-sensitive assets.

Therefore, continuously monitoring market position changes remains very important, especially in the options market. Compared to spot trading, options often reflect risk appetite shifts among fast-money accounts and tactical funds earlier. Although overall trading volume remains relatively low, market participants are not relaxing their vigilance but actively managing tail risks. Notably, Bitcoin’s performance continues to outperform other risk assets.

BTC3.71%

ETH4.48%

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