Bitcoin Put Flows and Elevated Skew During a Risk-Off Market
Summary
This market commentary uses BTC options flow to assess positioning during a period of weakness across risk assets. Although Bitcoin held up relatively well in spot trading, the author says options activity leaned defensive: put buying continued during price dips and rebounds, with notable interest in April puts across several strikes and June downside puts. Some May to June activity involved two-way downside positioning. The article links this demand to elevated put skew and describes calls as being used mainly to finance put purchases or generate yield.
The commentary also notes a notable exception: a buyer paid for May calls while spot was lower and call prices were depressed. Implied volatility rose as demand exceeded available supply, and sellers of options appeared reluctant to take the other side amid tariff-related uncertainty. These observations offer a snapshot of flow and sentiment, but the article provides no full trade records, methodology for classifying flows, or evidence that the positioning predicted subsequent returns. Put buying may reflect hedging as well as directional bearish bets.
Key ideas
- BTC options flow was dominated by put buying despite relative resilience in spot price.
- Demand focused on downside puts across near and later expiries, with some two-way positioning.
- Elevated put skew was consistent with demand for protection or bearish exposure.
- One reported May call purchase stood out against the prevailing defensive flow.
- Rising implied volatility and limited option selling were attributed to uncertainty around tariff news.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.