Glassnode: Bitcoin Front-End Option Trading Volatility is around 50, Traders are seeking downside protection and willing to pay a higher premium

BlockBeats News, October 17th, Glassnode released a market analysis stating that macro uncertainty continues to weigh on Bitcoin. Over the past week, gold has outperformed Bitcoin by over 20%, taking away some of Bitcoin's asset value preservation value. The options market also reflects this shift in sentiment. Overnight price changes have led to a sharp increase in short-term volatility. Bitcoin's front-end option is currently trading at a volatility of about 50, showing that traders are willing to pay a higher premium for immediate protection in case of a market downturn.

Recently, BTC has been more inclined to behave like a macro asset rather than a risk-hedging asset, showing a strong preference for put options. The cost of downside protection still remains higher than upside risk exposure, reflecting the market's continued defensive stance.