Bitcoin The price drop has changed the mood of the market, with bets on this subject sliding even more now, just as hot as Moonshot plays over $100,000.
The top cryptocurrency by market value fell nearly 10% this week, hitting a nine-month low below $78,000, according to CoinDesk data. Falling prices are sending traders rushing into put options, derivative contracts that protect against a potential decline in bitcoin, much like medical insurance covers you if you get sick.
Bottom line: The dollar value of the number of active Bitcoin put option contracts at the $75,000 level listed on Deribit now stands at $1.159 billion, almost matching the $1.168 billion notional open interest locked in the $100,000 call option. Deribit is the world’s largest crypto options exchange by volume and open interest, with one contract representing 1 BTC.
In other words, the $75,000 put, which represents a bet that the bitcoin spot price will fall below this level, is just as popular as the $100,000 call, which has been a dominant play for weeks. The latter is a bet on a six-figure price rise.
“[There has been a] massive increase in put buying in the last 48 hours (sensitivity at maximum), just as the BTC spot was crashing from 88,000 to 75,000. “Options traders/hedges/funds had these exact price ranges targeted with clear playbooks in place,” pseudonymous observer GravitySucks said in an X article.
Although the $75,000 put is the most popular bearish play, significant open interest is also seen in puts at strike prices of $70,000, $80,000, and $85,000, while the higher strike calls, except for the one at $100,000, do not have similar activity.
This stands in stark contrast to the trend seen since President Donald Trump’s victory, where calls for higher strike prices have consistently attracted more interest than puts with lower strike prices. The once-bullish positioning likely came from hopes that valuations would rise with Trump delivering on his election promises of pro-crypto regulation.
Although the Trump administration delivered on much of this promise, BTC’s price rally further collapsed above $120,000 in early October and has continued to decline ever since. Beyond macroeconomic pressures, the delay in the crypto market structure bill has likely added to the frustration.
