Bitcoin’s price crash has shifted the market vibe, with bets on it sliding further now just as hot as moonshot plays over $100,000.
The leading cryptocurrency by market value has dropped nearly 10% this week, reaching nine-month lows below $78,000, according to CoinDesk data. The price swoon has traders scrambling for put options, those derivative contracts that shield against a potential decline in bitcoin, just like medical insurance covers someone if they get sick.
The result: the dollar value of the number of active bitcoin put options contracts at the $75,000 level listed on Deribit now stands at $1.159 billion, almost matching the so-called notional open interest of $1.168 billion 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 bitcoin’s spot price will fall below that level, is just as popular as the $100,000 call, which has been a dominant play for weeks. The latter is a bet that prices will rise into six figures.
“[There has been a] massive surge in put buying over the past 48h (sensitivity at peak), right as BTC spot crashed from 88k to 75k. Options traders/hedgers,/funds, had these exact price ranges targeted with clear playbooks in place,” pseudonymous observer GravitySucks said in an X post.
While the $75,000 put is the most popular bearish play, significant open interest is also seen in puts at strikes of $70,000, $80,000, and $85,000, whereas higher-strike calls, except the one at $100,000, lack similar activity.
This stands in stark contrast to the pattern since President Donald Trump’s victory, where higher-strike calls consistently drew more interest than lower-strike puts. The erstwhile bullish positioning likely stemmed from hopes that valuations would surge with Trump delivering on his campaign promises of pro-crypto regulations.
While the Trump administration delivered on much of that promise, BTC’s price rally still fizzled out above $120,000 in early October and has been sliding ever since. Beyond the macro pressures, the delay in the crypto market structure bill has likely piled on the frustration.