Bitcoin Has Stabilized, But Investors Are Paying Up for Downside Protection: VanEck
Bitcoin’s price has stabilized near $70,000, leading to a drop in realized volatility from 80 to 50 over the past month. Despite this decline, traders remain cautious, paying high premiums for downside protection through put options. Premiums for puts fell 24% month-over-month but, at $685 million in the past 30 days, remain above 77% of monthly observations since early 2025. The put/call ratio spiked to 0.84 and averaged 0.77, the highest since 2021, signaling strong demand for hedging against losses. Historically, such elevated defensive positioning often precedes market recoveries. Transfers from long-term Bitcoin holders (holding for at least one year) are slowing, indicating reduced selling pressure. Bitcoin’s price is down about 1% over the past day but up over 5% for the month, currently trading at $69,891—still nearly 45% below its October all-time high of $126,080.
