Bitcoin investors are quickly protecting themselves against the risk of a downturn.

In recent days, the price volatility of Bitcoin has caught the attention of investors. After Bitcoin surpassed the $100,000 level, there has been a significant revival in the options market, and steps are being observed to protect against short-term decline risks.

According to a report by Glassnode, as levels of uncertainty rise, the interest of investors in transactions that provide protection against declines has also significantly increased. The expected volatility in the short term is again following an upward trend, which has become even more evident with the 1-week price volatility expectation rising to 51%. Particularly, the increase in demand for protective transactions over 1 month and 1 week stands out as an indicator of tension in the markets.

Among the transactions in the options market, the majority of put options, which are aimed at protecting against declines, are attracting attention. This situation is leading institutional investors, who act as market stabilizers, to sell Bitcoin futures in order to hedge against risks. As prices decline, it is forecasted that these sales will further increase, which could cause short-term volatility to reach new levels.

One of the most sought-after protection levels in the markets is currently $95,000. The rapid rise in the prices of put options at this level indicates that investors are taking the possibility of Bitcoin declining to this level seriously. Overall, the increasing volatility in the short term, the rise in demand for decline protection, and a climate of fear present a situation that investors need to monitor carefully.

As a result, there are several key points for Bitcoin investors. First of all, maintaining the $95,000 level is a threshold that could impact market movements. Additionally, the increase in interest in put transactions in the options market may provide information about the direction of market trends. It is crucial for investors to monitor these developments closely and update their strategies accordingly.