The Bitcoin market has experienced a significant price correction in the past few hours, with the price falling to around $110,000 due to the resumption of the trade war between the US and China. Prior to this decline, the cryptocurrency market leader led a strong rally, reaching a new all-time high of $126,198.17 on October 6, 2025. Interestingly, recent data on the Bitcoin options market indicated a wave of cautious positioning among institutional investors amid this price surge ahead of the current market downturn.
Institutions pull back as Bitcoin’s rally turns cheery – Glassnode
Blockchain analytics firm Glassnode offered some interesting insights into its weekly options market update in its October 10th post on X. In particular, Glassnode analysts reported that while the price of Bitcoin recently surged more than 10% to new all-time highs, institutional traders appear to have maintained a calm approach to the market, locking in profits and protecting the downside rather than chasing rallies.
Despite the steep rise, implied volatility, or a measure of expected price changes, remained virtually flat, hovering around 38-40%. Typically, rallies of that magnitude lead to higher volatility as traders rush to call and amplify exposure. But this muted response suggests composure from institutional investors who are either ready to make a move or simply not willing to pay for the additional upside.
Glassnode analysts also note another subtle but obvious distortion of login options. Even at the height of the rally, demand for put options remained strong, keeping the market moving higher. This suggests that many large players are selling calls through the options market, effectively limiting potential upside while maintaining insurance against a market reversal.
Moreover, put-call ratios reinforce this cautious pattern among institutions. With options expiring on Friday, October 9, the ratio rose above 1.0. This indicates that more puts than calls were traded as traders were busy hedging positions ahead of the current recession rather than chasing momentum and locking in recent uptrends.
In general, Glassnode explains that the Bitcoin market has adopted different behavior this cycle, driven by institutional discipline rather than the surge in volatility and retail exuberance seen in previous cycles. The dominance of institutional funds by spot ETFs and the recent emergence of cryptocurrency treasury firms may have added a thick layer of maturity to the $2 trillion market.
BTC Market Overview
As of this writing, Bitcoin is trading at $110,805 after falling 7.54% over the past 24 hours. Meanwhile, daily volume surged 150.37%, indicating increased market activity as traders reacted to the plunge.
Featured image from Flickr, chart from Tradingview
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