Bitcoin Options Put Demand Climbs as Hedging Costs Hit Record

Bitcoin options traders are increasing downside hedges as market caution spreads. A VanEck mid-March report shows the put-to-call open interest ratio rising to 0.84, the highest since June 2021. Over the past 30 days, about $685M was spent on put options, while call premium fell 12% to around $562M. The put-premium-to-spot-volume hedge cost reached 4 bps, an all-time high in available data, signaling that protection against declines has become much more expensive. At the same time, leverage is cooling. Bitcoin’s 30-day average price is down ~19%, while realized volatility eased from ~80 to just above 50. Futures funding rates dropped from 4.1% to 2.7%, suggesting reduced speculative leverage. The article also points to subdued network/activity conditions and no strong miner sell pressure, implying the surge in Bitcoin options demand is more about uncertainty than an immediate supply shock. Historically, spikes in protective Bitcoin options often appear near turning points. Still, these readings reflect defensive positioning and sentiment more than clear upside direction, which can keep near-term upside momentum less convincing even if panic selling is less likely.