Bitcoin Options Puts Surge as Traders Hedge Macro Risks
Bitcoin options traders are increasingly buying put options to hedge against macroeconomic risks, driving the put-call ratio on Deribit to 90%, up from a typical 50% in bullish conditions. Put option skew has reached +7%, the highest in four months, signaling rising demand for downside protection. Meanwhile, the annualized futures premium remains in a neutral 5–10% band at around 7%, suggesting traders are not positioning for a sharp drop below $110,000 despite a recent retest of $112,000 and Bitcoin’s struggle to reclaim $115,500. Elevated US 10-year Treasury yields falling from 4.32% to 4.21% reflect increased risk aversion, spurring hedging strategies amid weak corporate earnings and global trade tensions. Monitoring metrics like the put-call ratio and futures premium can provide insights into evolving market sentiment and Bitcoin’s resilience under external pressures.
Neutral
This news is neutral for Bitcoin’s price. While rising demand for put options indicates increased market caution and higher cost of hedging, the stable futures premium within the neutral band suggests traders are not heavily expecting a significant downturn. In the short term, volatility may rise as traders adjust hedges, but lack of aggressive bearish positioning reduces the likelihood of a sharp sell-off. Over the long term, persistent demand for downside protection could cap upward momentum but also underscores market resilience, as participants prepare for potential shocks without fully abandoning bullish convictions.