Bullish Sentiment in Bitcoin Options Market Increases Amid Declining Demand

On August 28, glassnode reported that Bitcoin's price rebounded to nearly $80,000, signaling positive trends in the options market. Open interest (OI) in options rose to nearly 550,000 BTC, indicating a recovery in capital and participation in the derivatives market. The DVOL index rebounded to around 41, suggesting an increased demand for volatility, although it remains below the high volatility range of 50-60, indicating that the market has not yet entered an extreme state.

In terms of options structure, the 25 Delta Skew has significantly narrowed across all maturities, with short-term Skew turning negative, indicating a decrease in demand for downside protection and a shift towards a more balanced or even bullish positioning. After BTC broke through $70,000, it entered a dense Gamma region between $75,000 and $80,000, with long and short options exposure concentrated near key strike prices, potentially amplifying the sensitivity of prices to changes in the options market.

Recent options capital flows have concentrated around $72,500 and $79,250, with significant buying of call options and limited demand for put options, indicating traders are betting on further increases in BTC. Overall, the rebound in BTC is driving a repair of positions in the options market, with a decrease in demand for downside protection, an increase in capital flow into call options, and a recovery in volatility, although it remains at moderate levels; if upward momentum continues, there is still room for repricing in the options market.

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