Bitcoin Options Traders Bet on Rebound Amid Three-Year High Volatility

Bitcoin options traders are positioning for a potential recovery by the end of the first quarter, with a call-to-put open interest ratio of 3:1 for March expirations. Volatility has hit three-year highs, with 25-delta implied volatility for calls and puts climbing to 75% and 95%, respectively, in mid-February. The risk reversal has also fallen to its lowest level since 2022, indicating a strong preference for puts over calls.