Bitcoin Options Flag Traders’ Fear As Iran War Carries On
The post Bitcoin Options Flag Traders’ Fear As Iran War Carries On appeared on BitcoinEthereumNews.com.
Key takeaways: Bitcoin traders are turning cautious as high oil prices and Middle East tensions fuel inflation and stall US interest rate cuts. The $254 million in spot Bitcoin ETF outflows is too small to confirm a bearish flip, yet options markets show heavy hedging. Bitcoin (BTC) price stagnated near $70,000 during the Friday trading session after failing to reclaim the $75,000 level on Tuesday. The decline marked two days of net outflows from US-listed Bitcoin spot exchange-traded funds (ETFs), reversing the trend from the prior seven days. Traders are now wondering if institutional investors are turning bearish, especially as the US stock market showed signs of weakness. US-listed spot Bitcoin ETFs daily net flows, USD million. Source: Farside Investors The bearish sentiment across global markets is weighing on Bitcoin as the S&P 500 plummeted to its lowest level in six months. Even gold, which typically acts as a hedge, faced a 10% sell-off over three days. As the US and Israel-Iran war triggers a broad move toward risk aversion, Bitcoin derivatives data now reflect increasing fear among traders. Bitcoin options put-to-call premium volumes at Deribit, USD. Source: Laevitas.ch Demand for put (sell) Bitcoin options premiums at Deribit was nearly 2.5 times larger than equivalent call (buy) instruments on Friday, indicating increased demand for neutral-to-bearish strategies. The prior surge in the metric occurred on Feb. 27 after Iran rejected negotiations to dismantle its key nuclear facilities and export its enriched uranium. Traders frustrated by Bitcoin’s 17% lag behind the S&P 500 To confirm if the increased demand for put options has effectively been used for downside protection, one should assess the delta skew metric. When market makers fear imminent Bitcoin price correction risks, the put options tend to trade at a 6% or higher premium relative to equivalent call instruments.…
Filed under: News - @ March 22, 2026 12:10 am