TechFlow News: On February 22, Glassnode’s latest BTC options weekly report noted that Bitcoin is consolidating tightly below $70K. Expectations for volatility in the options market have been significantly reset: At-the-money (ATM) implied volatility (IV) has sharply compressed from its recent high to around 48%, no longer pricing in an imminent crash; the volatility index (DVOL) has declined by approximately 10 points, confirming easing pressure; and the volatility risk premium (VRP) has turned positive—from -45 earlier this month—indicating short-dated options are now trading at a premium.
Meanwhile, the skew indicator remains put-heavy: 1-week 25-delta skew has rebounded from a low of 7 points to 14 points, reflecting traders’ continued focus on downside risk rather than upside potential; last week, puts accounted for two-thirds of total options activity, with put buying reaching 34% and dominating the downward flow. Dealers remain net short gamma overall—especially within the $58K–$70K range—which could accelerate any potential sharp downside move; however, a gamma cluster near $75K suggests positioning also supports a rebound.
Overall view: Panic-driven pricing has subsided, yet defensive positioning and structural fragility persist. The market remains vulnerable to further volatility in the near term; caution is advised against downside retracements rather than rushing to “catch a falling knife.”
