Gate Research Institute: Implied volatility fluctuates at high levels, with demand for options hedging and volatility structure rising in tandem.

The cryptocurrency market has weakened recently, with Bitcoin breaking through a key support level and briefly falling below $90,000, erasing its year-to-date gains and falling approximately 27% from its intraday all-time high on October 6th. Technically, the 50-day moving average crossed below the 200-day moving average, forming a "death cross," further turning the medium-term trend 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 has increased in the options market, leading to higher short-term put implied volatility (IV) and a corresponding rise in overall implied volatility.