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Bitcoin options signal downside hedging as volatility compresses

Spot bitcoin ETFs pulled in $754 million in the first week of August, while put options made up 53.8% of bitcoin options volume over the past 24 hours.

Reported · Written up by our desk · Market Structure

CoinDesk reports that bitcoin’s day-to-day volatility has dropped sharply, with Deribit’s DVOL index tracking implied 30-day volatility near 35, down from a peak around 90 earlier this year. The outlet says that this compression extends across multiple time horizons, including 30-, 60-, and 90-day options.

Even with bitcoin near $64,700, derivatives trading has skewed toward downside protection around key strike levels. CoinDesk cites CoinGlass data showing that put options accounted for 53.8% of bitcoin options volume over the past 24 hours, and that three of the four most-traded contracts were puts at $62,000 or $63,000 expiring Aug. 10, Aug. 14, and Aug. 28.

CoinDesk also notes a split inside the options positioning, with calls still representing 60.7% of total open interest. The newsletter frames this as a market that has spot support, but where traders are guarding against a retreat.

Looking ahead, CoinDesk points to the U.S. jobs report as a potential test of whether the “low-movement” expectations hold. Economists surveyed by FactSet are expecting payrolls to have risen about 97,500 in July after a 57,000 gain in June, with unemployment steady at 4.2%, and the outlet says a strong or weak reading could move bond yields and rate expectations.

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