According to @glassnode, the increasing cost of downside protection in Bitcoin options indicates a cautious market sentiment. This trend is attributed to institutions refining their risk management strategies, as the options market offers significant insights into expected volatility and potential price directions. The rising premiums for put options suggest traders are preparing for possible declines, reflecting an anticipatory stance towards market fluctuations. Such movements in the options market are critical for traders aiming to adjust their positions based on volatility forecasts.

According to glassnode, Bitcoin options markets are reflecting a growing demand for downside protection. The Volatility Smile indicates that puts are trading at a higher premium than calls, which suggests a risk-averse positioning among investors as they hedge against further downside.