[Analysis] "Bitcoin (BTC) Options Market Recovers 'Risk-On' Sentiment... Increase in Bullish Bets"

An analysis has emerged that the preference for risk assets, known as the 'Risk-On' trend, is reviving in the Bitcoin (BTC) options market.

According to the virtual asset data analysis company Glassnode, on the 16th, through X (formerly Twitter), it stated, "The implied volatility of call options in the derivatives market has surpassed that of put options. The trend of betting on the upside is strengthening rather than hedging against downside risks."

According to Glassnode, the recent 1-month 25 delta skew of Bitcoin options has fallen to -6.1%. This suggests that the demand for call options in the upward direction has increased, and the market is weighing the possibility of a short-term rally.

Furthermore, Glassnode added, "The 'Risk-On' sentiment reflecting bullish expectations is being detected in the options market," and "This can act as a psychological foundation supporting the upward trend in Bitcoin prices."

Meanwhile, 'Risk-On' refers to a market sentiment state where funds are operated in risk assets such as stocks and cryptocurrencies instead of safe assets.

Additionally, skew refers to the difference in implied volatility between call options and put options. A positive skew value means that the implied volatility of put options is higher than that of call options, indicating a greater demand for hedging against downside risks. Conversely, a negative skew value indicates that the implied volatility of call options has increased, signaling that the expectation for an upward trend is strengthening.