Bitcoin Options Show Lingering Fear Premium Despite BTC Price Recovery

Even as Bitcoin (BTC) rebounds from recent lows, a significant "panic premium" persists in the options market. This key metric indicates that traders remain cautious and are paying higher prices for protective put options. The sustained demand for downside protection suggests that, despite the price recovery, market sentiment is still tinged with fear and anticipation of potential volatility. Analysts monitor this divergence between spot price action and derivatives sentiment as a critical gauge of underlying trader psychology and potential future market moves for BTC and the broader cryptocurrency sector.