Bitcoin options signal extreme fear as downside protection premium hits new all-time high, says VanEck

Bitcoin traders are exhibiting extreme caution, evidenced by options market data showing record premiums for downside protection (put options). VanEck noted that the put/call open interest ratio reached 0.84, the highest since June 2021, and put premiums relative to spot volume hit an all-time high of roughly 4 basis points, surpassing levels seen after the Terra/Luna collapse.

This high level of fear coincides with stabilizing spot prices, a drop in realized volatility from 80 to 50, and cooling leveraged speculation as futures funding rates eased. Historically, VanEck observed that such extreme options skew readings have often preceded significant Bitcoin price appreciation, averaging 13% gains over 90 days and 133% over 360 days in the past six years, suggesting these fear indicators may mark market turning points rather than impending breakdowns.

(Source：CoinDesk)