According to CoinDesk: The options orders flow for Bitcoin (BTC) and Ether (ETH) reflects an unperturbed sentiment among crypto traders, despite increasing geopolitical tensions in the Middle East and an ambiguous global economic landscape. The bias for selling options in both crypto markets suggests an anticipation for continued low volatility.

As put by Samneet Chepal, a crypto quant researcher, the bid/ask ratio in the Deribit options order book — which manages over 85% of the global activity in BTC and ETH options — consistently leans below one, indicating a preference for volatility selling.

Ratios lean below 1, signaling a bias for volatility selling. (Samneet Chepal) (Samneet Chepal)

Typically, geopolitical events and central bank actions prompt traders to buy options, premised on the idea that these factors may cause substantial market volatility. However, amidst escalating tensions and fears of stagflation across several nations, BTC and ETH are maintaining a steady trade.

BTC, the largest cryptocurrency by market value, has seen limited price fluctuations, operating within a $27,000 - $28,500 range this month. Similarly, Ether trades within the two-month range of $1,550 - $1,750.

The order book activity corroborates the drop in implied volatility (IV), i.e., investors' expectations for price volatility, in BTC and ETH since the year's start. Both the bid-ask ratio and the IV hold a significant effect on the demand for options in these crypto markets.