Bitcoin put/call ratio hits 6-month low of 0.59 as volatility eases

Bitcoin options traders are betting on upside as the put/call ratio drops to 0.59, its lowest level in six months, while implied volatility compresses.

Bitcoin's put/call ratio fell to 0.59, a six-month low, as implied volatility dropped from 48 to 40, with call options now dominating puts across Deribit.

"Traders are becoming more comfortable and less defensive," Glassnode analysts said, pointing to the put/call ratio decline as evidence of a mood shift in the options market.

Bitcoin traded at $63,336 as of 14:00 UTC on July 17, down about 2% on the day, according to CoinGecko. The DVOL index, which tracks implied volatility, has compressed by 8 points over several weeks as price action stabilized after June lows near $58,000. Options positioning is concentrated in a dense gamma zone between $68,000 and $70,000, per Glassnode's data on Deribit.

The combination of falling volatility and rising bullish positioning typically supports sustained price appreciation. If Bitcoin pushes toward the $68,000-$70,000 cluster, gamma dynamics could accelerate the move rather than slow it. None of this guarantees a rally, but the options market is pricing in less turbulence ahead.

Fewer hedges, more upside bets

The put/call ratio compares the number of put options — bets on a price decline — to call options, which profit from a rise. A ratio below 1 means calls outnumber puts. At 0.59, calls are outpacing puts by the widest margin since January.

This shift follows weeks of elevated hedging during Bitcoin's June selloff, when the ratio climbed above 0.80 as traders rushed to protect downside. The unwind of those hedges, combined with new call buying, has flipped the options market from defensive to leaning bullish.

Volatility compression supports the case

Implied volatility falling from 48 to 40 suggests the market expects narrower price swings ahead. Lower volatility reduces the cost of holding long positions and can attract institutional participants who require predictable risk parameters.

The broader macro backdrop remains mixed. Long-term holders are still realizing losses, with more than 65 percent of coins flowing into exchanges coming from that cohort, according to Glassnode. U.S. spot Bitcoin ETFs saw a tentative return of inflows this week — $181 million on Tuesday and $108 million on Wednesday — after a $425 million outflow on Monday, per Farside Investors.

Still, the options data offers a forward-looking indicator that contrasts with the on-chain selling pressure. As Glassnode noted, bear markets rarely find durable footing until long-term holder selling exhausts itself — and the options market is already pricing the recovery before the selling has fully faded.

This article is for informational purposes only and does not constitute investment advice.