Bitcoin Options Market Absorbs Selloff Shock as Implied Volatility Normalizes to 40%

According to Glassnode, Bitcoin options markets have absorbed the recent selloff shock on June 12, with implied volatility normalizing significantly. At-the-money (ATM) implied volatility for one-week options briefly spiked to 65% as Bitcoin fell below its February support level, but quickly subsided to around 40%, indicating traders viewed the decline as a contained event rather than a systemic disruption. One-week options skew, measuring investor preference for protective puts, climbed from 12% to 28% during the selloff before retreating to roughly 12%, showing hedging demand has eased. One-month realized volatility increased to 41% following the decline, aligning closely with one-month implied volatility, suggesting market movements match options pricing expectations.

Despite volatility normalization, options positioning continues signaling caution. Put options accounted for approximately 30% of premium traded over the past seven days compared with 20% for call options, indicating sustained demand for downside protection. Negative gamma exposure is concentrated around the $65,000 level, slightly above Bitcoin's spot price near $63,800, with additional short gamma positions between $65,000 and $70,000.