Panic has once again engulfed the cryptocurrency market as bitcoin continues to fall to $62,000, spurring demand for options bets that protect against potential price losses below $50,000.
In the last 24 hours, the $50,000 strike option expiring on June 26 is the most traded bet on Deribit, the world’s largest crypto options exchange by volume. A put option provides insurance against price losses in the underlying asset.
This shows that even as Bitcoin remains well above the strike, it suggests that traders are either positioning themselves for a significant correction or locking in cheap insurance against tail risk events in the coming weeks.
The rest of the classification reinforced a clearly bearish inclination. Two other puts with strike prices of $65,000 and $55,000 also saw notable volume. The only option to be in the top five was $80,000.
The overwhelming presence of selling volume on multiple moves lower indicates that a notable portion of the options flow is betting or hedging against Bitcoin being unable to maintain its current levels.
