ETC Group Analyst Bitcoin Volatility Term Structure Inversion Indicates Extreme Bearish Signal in Options Market

According to a report by The Block, analysts from ETC Group have stated that with the recent price correction of Bitcoin, the demand for downside protection among traders has increased, which is reflected in the increase in the quantity of bearish options. According to Deribit’s data, the put/call ratio of Bitcoin options with a Friday expiration has risen above 1, which is considered a bearish signal in the market. A ratio above 1 indicates that the number of bearish options traded significantly outweighs the number of bullish options, suggesting that more investors are betting or hedging against a price decline rather than an increase.