glassnode: Bitcoin Option Defensive Positioning Unwinding, Put Hedging Demand Easing

July 24th, glassnode released Bitcoin options market data indicating that the Bitcoin put/call open interest ratio has dropped significantly from around 0.76 at the end of June to 0.52. This suggests that defensive positions are being unwound, while the BTC price remains stable around $67,000.

ATM ( Note: At-The-Money refers to options with a strike price closest to the current underlying asset price) implied volatility remains in a compressed state, with a 34.3% level for 1 week and 40.8% for 6 months. The term structure is upward sloping, indicating that short-term event risks are being underestimated by the market.

The short-term 25-delta skew has sharply fallen to around 4%, reflecting a reduced demand for downside hedges in the near term. However, the medium to long-term skew remains at a defensive premium level of 11-12%.