Bitcoin options market flashes extreme fear amid price weakness

A bearish outlook is prevailing in the Bitcoin options market as the cryptocurrency shows signs of short-term weakness, according to an analysis by Cointelegraph. The report noted that on Jan. 30, the Bitcoin options delta skew surged to 17%, its highest level in one year. Cointelegraph explained that in a neutral market, put options typically trade at a 6% premium over call options of the same size, meaning the current level indicates extreme fear among traders. Furthermore, approximately $860 million in leveraged Bitcoin long positions were liquidated between Jan. 29 and 30, suggesting the price drop was larger than many traders had anticipated.