Bitcoin market sentiment turns defensive as options market reflects rising demand for hedging

Foresight News reported, citing glassnode analysis, that ongoing macro uncertainty continues to weigh on Bitcoin (BTC) performance. Data shows that over the past week, gold has outperformed Bitcoin by more than 20%, with some "store of value" funds flowing into the gold market. Options market data reflects a clear shift in market sentiment: overnight volatility triggered a sharp surge in short-term volatility, with BTC front-end options volatility around 50, indicating that traders are paying a premium for immediate protection; BTC option skew continues to exhibit macro asset characteristics, with a clear preference for put options, and the cost of downside protection is higher than upside risk exposure; capital flows are relatively balanced, with some accounts reducing protective positions, some accounts selling volatility on the decline, and others selectively buying call options; overall volatility structure remains defensive, showing a preference for put options, marginally rising volatility, and high demand for tail hedging.

Analysis shows that although many accounts hold year-end upside risk exposure, the resilience of downside volatility has weakened this momentum. In the current market environment, selling put options or put spreads to fund potential upside in November remains attractive, provided traders can tolerate the associated risks.