Bitcoin options market sentiment is improving, according to a Glassnode analysis released Aug. 7, but the data also shows that investors have not fully abandoned downside hedges.
The firm pointed to a sharp drop in short-term downside skew. The 1-week 25 Delta Skew has fallen to around 7%, a reading Glassnode interprets as easing panic in the immediate market. Over longer time horizons, however, skew is still holding in the 10%-12% band, a sign that demand for protective put exposure remains in place.
Positioning data backs that up. Open interest in BTC call options stands at roughly $15 billion, about $5 billion more than the $10 billion notional recorded for puts. Recent activity has concentrated in the $61,000-$67,000 strike range, with a clear pickup in call buying at the $65,000 strike.
Glassnode's assessment is measured: the market is moving toward more constructive positioning, but it has not yet relinquished its protective hedges.
Bitcoin options traders are turning more constructive, according to Glassnode's market update published Aug. 7. The firm's data shows short-term downside skew has retreated sharply, with the 1-week 25 Delta Skew down to roughly 7%, a level it says reflects easing near-term panic.
That improvement does not extend to longer tenors. Skew there remains pinned in the 10%-12% range, a signal that investors are still willing to pay for downside protection further out on the curve.
Call Open Interest Leads Puts
The positioning picture reinforces that mix of optimism and caution. Notional open interest for BTC call options is around $15 billion, topping the roughly $10 billion in put open interest. Recent flows have centered on the $61,000-$67,000 strike band, with a notable uptick in call buying at $65,000.
Glassnode concludes that the market is rotating toward more positive positioning, while it has not yet abandoned its hedging posture.
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