BTC put options surge as traders hedge for $75K price crash
Traders are flocking to BTC put options on Deribit, reflecting growing bearish bets on Bitcoin’s price. Since Bitcoin slipped below $94,000, short-term $75,000 puts have dominated, accounting for over 65% of options volume last week. Blockchain analytics firm Glassnode notes this heavy BTC put options activity signals traders expect a further slide, echoing April’s dip to around $74,000. Market participants are also exploiting volatility spreads by selling high short-dated volatility and buying longer-dated contracts to profit from price dislocations. Glassnode warns the options market shows no bottom yet, suggesting continued downside risk for Bitcoin.
Bearish
The surge in BTC put options and their 65% share of last week’s volume indicate a clear bearish sentiment among traders. Historically, similar heavy put buying around April preceded Bitcoin’s drop to $74K. The dominant $75K puts and volatility spread strategies suggest market participants are braced for further declines. In the short term, this could accelerate selling pressure as hedges convert to bearish positions. Over the long term, if spot price stabilizes above key levels, these put positions may limit volatility, but until a bottom signal appears in options markets, bearish momentum is likely to persist.