View: Bitcoin Put Options Demand Declining as Traders Bet on Further Upside

BlockBeats News, August 28th, Glassnode reported that Bitcoin quickly rebounded and approached $80,000 again. The options market also began to release more positive signals. The open interest (OI) of options contracts surged in sync with the BTC price, reaching nearly 550,000 BTC, indicating a significant recovery in derivative market liquidity and participation. At the same time, DVOL saw a sharp rebound to around 41, indicating a renewed demand for volatility, but still significantly below the high volatility range of 50-60 seen before, and the overall market has not yet entered an extreme state.

Looking at the options structure, the 25 Delta Skew has significantly narrowed across all maturities, with the short-term Skew even turning negative, meaning the market's demand for downside protection is decreasing, and positions are gradually shifting towards a more balanced or even upward-biased direction. After Bitcoin broke through $70,000, it has now entered a dense Gamma region between $75,000 and $80,000, with long and short option exposures concentrated around key strike prices. As positions continue to adjust, the sensitivity of prices to changes in the options market may further increase.

Recent options fund flows have been mainly concentrated around $72,500 and $79,250, with significant bullish option buying at both strike prices, while demand for bearish options is relatively limited, indicating that traders are betting on a further Bitcoin price increase. Overall, the Bitcoin rebound has driven a continuous restoration of positions in the options market, reduced demand for downside protection, strengthened the flow of bullish options funds, and although volatility has rebounded, it remains at a relatively moderate level; if the upward momentum continues, there is still room for further repricing in the options market.