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Investor Demand for S&P 500 Downside Protection Plummets 75% Since March

BeInCrypto
Investor appetite for S&P 500 hedging has collapsed by 75% since March, signaling increased market confidence and a shift toward risk-on assets like Bitcoin.

Summary

The demand for S&P 500 downside protection has dropped significantly, with the three-month single-stock put-call skew falling 75% to 0.04 since March. This decline indicates that investors are moving away from hedging against market crashes, reflecting a broader trend of market complacency amidst record-breaking rallies in US equities. Historical data suggests this risk-on sentiment often benefits high-beta assets, including Bitcoin, as traders lean into potential upside exposure.

(Source:BeInCrypto)