Bitcoin Options Volatility Compresses to 48% as Panic Eases, Glassnode Reports

Bitcoin's consolidation below $70,000 triggered a major reset in options volatility, with at-the-money implied volatility compressing to 48% and the DVOL index dropping about 10 points, Glassnode data show in its latest BTC Options Weekly Report. The volatility risk premium flipped from negative 45 earlier this month to positive territory, while the 1-week 25-delta skew climbed from 7 points to 14 points and tilted toward puts, with put contracts accounting for two-thirds of trading last week and put buying reaching 34%. Dealers are broadly short gamma in the $58,000–$70,000 band, which could amplify sharp downward moves, though a gamma cluster around $75,000 indicates some positioning for a potential rebound. Glassnode concluded that fear-driven pricing has eased but defensive positioning and structural fragility leave the short-term market exposed to additional volatility.