Bitcoin Options Market Turns Bearish Amid ETF Outflows

The Bitcoin options market is exhibiting bearish sentiment as outflows from spot Bitcoin ETFs continue. The delta skew indicator in the derivatives market surged to 17%, a multi-year high, indicating heightened risk aversion compared to the typical 6% level in a neutral market. This shift suggests increased expectations that Bitcoin could fall below $80,000.

Additionally, total open interest in Bitcoin futures has decreased to $46 billion, down from a peak of $58 billion three months ago, reflecting a reduction in excessive leverage. Analysts note that Bitcoin’s ability to reclaim levels above $87,000 may hinge on a recovery in market risk appetite following the resolution of macroeconomic uncertainties.