Bitcoin Options Pricing Falls to Five-Year Low as Traders Hedge Downside

Bitcoin (BTC) options pricing has reached a five-year low, with near-term implied volatility falling below realized volatility as traders maintain long positions while adding downside protection. Near-term implied volatility stood at 33.5%, more than 4 percentage points below realized volatility. The gap indicates that options are priced relatively cheaply compared with recent market movements. Bitcoin options skew declined by nearly 3 percentage points over the past week. Traders concentrated purchases in October-expiring puts with strike prices of $78,000 and $80,000. The largest block trade reached $204 million.

Source: TokenPost