#Hot Gate Research: BTC Volatility Remains Elevated, Divergence in Hedging Demand Emerges

According to Gate Research, this week the crypto market maintained volatile movements under the dual impact of macro factors and investor sentiment. Expectations of a Bank of Japan rate hike and ongoing uncertainty around the Federal Reserve’s policy continue to ferment, with the probability of a rate cut in December currently at 89.2%. BTC saw a sharp rebound on Wednesday, briefly rising back to around $93,000, showing a clear short-term recovery. From a technical perspective, support below remains strong, and the overall market is in a news-driven range-bound phase.

This week, implied volatility in the options market for BTC and ETH retreated slightly compared to last week, with IVs at 48.6% and 70%, respectively. Over the weekend, the 25-Delta Skew for both BTC and ETH rose rapidly, indicating spreading market panic and an increase in defensive sentiment. BTC’s volatility risk premium turned from negative to positive and hovered near the zero axis. The largest block trade by cumulative size was buying BTC-51225-75000-P, with a trading volume of about 1,200 BTC and a premium expenditure of approximately $270,000; and buying ETH-51225-3100-C, with a trading volume of about 25,000 ETH and a premium expenditure of approximately $340,000.

In addition, Gate has added options trading support for HYPE, SUI, and BNB, bringing the total to 11 major assets with USDT-settled options now available. Users can participate in options trading via the website or app to access more flexible investment strategies and risk-hedging choices.