According to @KobeissiLetter, the cost of hedging a 10% drop in the Nasdaq 100 ETF QQQ relative to bullish bets has risen to its highest level since the 2022 bear market, with relative hedging costs up about 40% over the last five months and current downside protection pricing higher than in 92% of recent cases, indicating elevated demand for puts and downside insurance (source: @KobeissiLetter). The post adds that investors are actively adding hedges to protect long equity exposure and that growing caution is tied to the September Federal Reserve meeting next week, with market focus centered on the policy decision and guidance (source: @KobeissiLetter). For crypto markets, episodes of equity risk-off have coincided with stronger equity-crypto co-movement, with Bitcoin’s correlation to stocks rising notably in 2022, which frames potential spillover risk for BTC and ETH around major Fed events (source: International Monetary Fund, Global Financial Stability Note, January 2022).

According to @QCPgroup, BTC retreated from highs above 124,000 USD before stabilising; source: @QCPgroup on X, Aug 15, 2025. They also note volatility eased in Asia hours, while options markets still show a bias toward downside protection; source: @QCPgroup on X, Aug 15, 2025.

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.