Bitcoin Options Market Absorbs Downturn, IV Falls From 65% to 40%

BTC0.17%
According to Foresight News citing Glassnode analysis, Bitcoin's options market showed signs of recovery as short-term implied volatility stabilized following a break below February lows. The 1-week at-the-money (ATM) implied volatility spiked to 65% but quickly fell to around 40%; skew recovered from 28% back to 12%, indicating panic sentiment subsided. One-month realized volatility rebounded to 41%, narrowing the volatility risk premium. However, Taker flows remain defensive, with put buying accounting for 30.9% of options premium volume versus 20.1% for calls, suggesting the market maintains caution despite absorbing the initial shock.
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