bitcoin has fallen sharply, falling more than 25% to $83,700 this month, and the data suggests some traders are bracing for a further decline.
According to blockchain analytics firm Glassnode, traders have been heavily buying short-term BTC puts 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 the price of Bitcoin will fall below that level, echoing the drop in early April that bottomed around $74,000.
Glassnode commented on X: “The options market is not yet signaling a bottom and is tilting 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 accounted for more than 65% of all options activity over the past week, indicating aggressive short covering by traders. Glassnode noted that this also reflects traders exploiting volatility spreads by selling short-term high volatility and buying longer-term contracts to capitalize on market distortions.
