Bitcoin has fallen sharply, falling over 25% to $83,700 this month, and data suggests some traders are bracing for a further drop.
According to blockchain research firm Glassnode, traders have been heavily buying short-term BTC put options at the $75,000 strike price on Deribit since bitcoin’s spot price fell below $94,000 earlier this week.
The $75,000 put option reflects a bet that Bitcoin’s price will fall below this level, echoing the early April dip that bottomed out around $74,000.
Glassnode commented on X, “The options market is not signaling a bottom yet and is leaning towards the risk of a deeper move.”
CoinDesk recently highlighted a clear bearish shift in the Bitcoin options market, with the $85,000 put option becoming the dominant trade, replacing the previously popular $140,000 call option.
Put options have comprised over 65% of all options activity in the past week, indicating aggressive downside hedging by traders. Glassnode noted that this also reflects traders taking advantage of volatility spreads by selling high short-term volatility and buying longer-dated contracts to capitalize on market dislocations.
