Bitcoin Rebounds Above $67,000, but Options Still Price a Near-Term “Panic Premium”

Bitcoin traded around $67,000 on Friday after rebounding from this week’s lows, steadying broader crypto markets after a volatile start to February.

The recovery has not changed how derivative markets are positioned. Short-dated options continue to price downside protection at a premium, even as spot stabilizes.

A move above $72,000 remains the level many desks use to argue the current range is breaking in Bitcoin’s favor.

Bitcoin’s bounce stays trapped in the $60,000–$72,000 range

Bitcoin’s rebound has kept the price inside the same zone that has defined trading since the early-February drawdown. The market has repeatedly found buyers in the mid-$60,000s, but rallies have struggled to extend beyond the low-$70,000s.

That range matters because it is where recent spot demand has shown up and where overhead supply has tended to meet relief rallies.

U.S. spot Bitcoin ETF flows remain the cleanest demand signal

U.S.-listed spot Bitcoin ETFs continue to act as a daily stress test for real-money demand. When those products see sustained withdrawals, spot liquidity thins and rallies tend to fade faster.

Recent months have been dominated by outflows. January saw more than $3 billion leave U.S. spot Bitcoin ETFs, following roughly $2 billion in December and about $7 billion in November. More recently, derivatives-linked market commentary flagged another week of net outflows in ETFs tracking Bitcoin’s spot price, even as Bitcoin tried to hold the $65,000 to $70,000 area.

Options traders are still paying up for immediate protection

Options markets have cooled from the peak stress of early February, but the pricing still leans defensive. Implied volatility has compressed to about 50% across maturities, yet the skew remains tilted toward puts, which keeps near-term protection expensive relative to upside exposure.

One of the clearest signals is the one-week 25-delta skew. It stood at 15.049% as of Feb. 19, a level that indicates puts are still priced richer than calls in implied volatility terms. In plain terms, traders are still paying extra for downside insurance in the front end of the curve.

That lingering premium is the “panic premium” in practice. Spot can bounce, but the options market is still pricing near-term tail risk as something worth hedging.

Futures pricing is cautious, even with spot off the lows

Futures markets are not signaling a clean risk-on reset. Short-dated futures have continued to trade below spot at times, and funding has been neutral-to-negative rather than persistently positive. That combination points to traders staying selective with leverage, not chasing the rebound.

This matters because sustained trend shifts in Bitcoin have typically required both spot follow-through and derivatives markets willing to carry directional exposure without demanding a discount.

Liquidations have cooled, but downside hedges remain in demand

February’s selloff forced widespread deleveraging across crypto. During the sharp break earlier this month, roughly $1 billion in Bitcoin positions were liquidated over a 24-hour stretch, highlighting how quickly leverage can unwind when volatility spikes.

Since then, the market has looked more orderly, but positioning remains cautious. Hedgers have reduced the most extreme crash protection, yet skew is still elevated compared with calmer periods, and the front end continues to carry a protection bid.

The bounce holds, but the market still pays for downside insurance

Bitcoin has stabilized near $67,000, but the next leg will be decided less by the bounce itself and more by whether spot flows turn durable and the options market stops charging extra for short-dated protection.