BIT: Bitcoin options market shifts towards defensiveness, with downside protection demand rising significantly.

BIT (formerly Matrixport) released a chart today stating that while the Bitcoin spot price has not yet fully reflected this change, the options market has already reacted with a significant increase in implied volatility and a continued rise in demand for downside protection. Over the past week, put options accounted for 29% of trading volume in Bitcoin options, and an even higher 37% in Ethereum, indicating a clear shift towards defensive positioning. Behind this position adjustment lies traders' deep concerns about geopolitical tensions: inflationary pressures may persist longer and their impact may extend beyond oil prices to a wider range of growth-sensitive assets. Therefore, continuously monitoring market positioning changes remains crucial, especially in the options market. Compared to spot prices, options tend to reflect changes in the risk appetite of quick-money accounts and tactical funds earlier. Although overall trading volume remains relatively low, market participants are not complacent and are actively managing tail risk. However, it is worth noting that Bitcoin's performance continues to outperform other risk assets.