The latest Bitcoin drop below $81,000 today has sparked a strong reaction in the options market.
According to Glassnode’s latest options analysis, traders are massively buying short- and mid-term put options at the $75,000 strike, indicating expectations that the price could fall further. This surge in demand for protection suggests many believe Bitcoin has not yet bottomed and may continue to move lower.
For context, Bitcoin’s price crashed more than 10% today, falling from $91,084 to as low as $80,600 before slightly rebounding to $84,000 at press time. Bitcoin is now 32% below its all-time high.
Despite this significant drawdown, traders are betting on much lower prices.
Bitcoin Short-Term Volatility Explodes Amid Panic
One of the clearest signs of stress is the surge in near-term implied volatility. Options expiring within 24 hours have jumped to 95% IV, rising 40 points in a single day. This type of rapid spike implies high expectations of large price swings driven by panic selling.
The wide gap between 1-week IV (above 65%) and 1-month IV confirms that fear is concentrated in the immediate future, with traders preparing for short-term instability.
Additionally, options skew has moved clearly in favor of puts (bearish traders), showing that market participants are increasingly seeking downside protection. Even 6-month puts have gained about two volatility points, which is unusual for what is typically a short-term pullback.
This widening skew across both short- and long-term expiries suggests traders are not just hedging the current drop; they’re also turning more cautious about Bitcoin’s outlook in the months ahead.
Put Volume Dominates
Over the past week, nearly 68% of all options trades have been puts, showing that the market is prioritizing protection over speculation. Traders are also taking advantage of the volatility gap by selling extremely high short-term volatility and buying longer-term options that are still relatively cheap.
This behavior is common during market drops, when traders need immediate protection but also want to stay prepared for the possibility of longer-lasting weakness.
Downside Premium Flow
67.6% of last week’s options activity was on the put side. This reflects aggressive hedging into the drop and traders exploiting the vol spread by selling short dated volatility and buying longer dated ones to capture the dislocation.… pic.twitter.com/UtBv8m9bcx
— glassnode (@glassnode) November 21, 2025
BTC Market Outlook
The combination of soaring short-term volatility, strong put skew, and heavy buying of $75K puts shows that traders are bracing for more turbulence.
In other words, even after Bitcoin’s massive drop, the options market is not signaling a rebound. Instead, positioning suggests traders expect the possibility of a deeper pullback before any real recovery.
Overall, the data points to a stress phase in which downside bets dominate and confidence in a near-term bottom remains very low.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
