View: Demand for Bitcoin put options declines, traders are betting on further upside.

Glassnode noted in a post that Bitcoin has rebounded sharply, approaching $80,000 again, with the options market also starting to send more positive signals. Bitcoin’s open interest (OI) in options has risen in tandem with its price, now nearing 550,000 BTC, indicating a notable recovery in derivatives market capital and participation. Meanwhile, DVOL has surged to around 41, signaling renewed market demand for volatility, though it remains well below the earlier high volatility range of 50 to over 60, meaning the overall market has not yet entered an extreme state. Looking at the options structure, the 25 Delta Skew has narrowed significantly across all maturities, with short-dated skew even turning negative, indicating that market demand for downside protection is declining and positions are gradually shifting toward a more balanced or bullish bias. After Bitcoin broke through $70,000, it has now entered a dense Gamma zone between $75,000 and $80,000, with long and short option exposures concentrated near key strike prices. As positions continue to adjust, this could further amplify the price’s sensitivity to changes in the options market. Recent options flows have been concentrated near $72,500 and $79,250, with significant call option buying at both strike prices, while put option demand remains relatively limited, showing traders are betting on further upside for Bitcoin. Overall, Bitcoin’s rebound has driven continuous repair of options market positions, with downside protection demand falling and call option flows strengthening. While volatility has rebounded, it remains at a relatively moderate level; if upward momentum persists, the options market still has room for further repricing.