PANews reported on November 19th that Gate Research stated the recent overall weakness in the crypto market, with Bitcoin breaking through key support levels and briefly falling below $90,000, erasing its year-to-date gains and falling approximately 27% from its intraday high on October 6th. Technically, the 50-day moving average crossed below the 200-day moving average, forming a "death cross," further shifting the medium-term trend to bearish. In terms of funding, cryptocurrency ETFs saw net outflows of $1.26 billion this month, indicating a significant decline in institutional risk appetite. Amidst overall liquidity contraction, downside protection demand in the options market has increased, leading to higher short-term put implied volatility (IV) and a corresponding rise in overall implied volatility.

This week, implied volatility in the options market remained high, with BTC IV at 50.9% and ETH IV at 75%. The 25-Delta Skew for both BTC and ETH quickly turned negative and the curves became steep, indicating rising market panic and defensive sentiment. The largest transaction was a buy order for BTC-281125-116000-C and a sell order for BTC-211125-107000-C, totaling approximately 1,500 BTC and incurring premium payments of approximately $96,000. This involved betting on a moderate decline while hedging against tail risks on the upside.