Bitget Research: The bulk of options trading is primarily for hedging, and the risk of a second downturn in the crypto market has intensified

Bitget Research pointed out in its latest analysis report: "On the evening of August 15 (UTC+8), cryptocurrencies suddenly plummeted, with Bitcoin falling to its lowest level since the market panic at the beginning of August."

"As far as it stands now, there doesn't seem to be any obvious external reason for today's sell-off. The U.S. stock market has soared again, with the Nasdaq index up 2.4% and the SP 500 index up 1.6% - both indices have now returned to levels before the panic at the beginning of August."

The report believes that: "The largest options trade was buying bullish options for 65,000 by year-end while selling bullish options for 85,000 by end-March next year, totaling 380 BTC. The behavior of selling options is mainly to lock in profits and overall reflects a fairly obvious hedging sentiment."