Bitcoin Traders Brace for Downside as $80K Put Becomes Go-To Hedge
Market sentiment around bitcoin (BTC) has taken a sharp turn, with options traders now piling into protective positions. The $80,000 put option has emerged as the most heavily traded contract on Deribit, signaling growing concern about further losses.
Data from Amberdata shows over 10,278 open contracts at this strike, translating to more than $864 million in notional value. This marks a stark contrast to earlier in the year, when bullish call options targeting $100,000 and even $120,000 were the top trades.
The pivot toward downside protection comes amid a challenging macro backdrop. BTC slid over 11% in Q1, briefly falling below $80,000 as renewed trade war fears and economic uncertainty rattled markets. President Trump’s upcoming announcement on sweeping tariffs has only added fuel to the fire, prompting traders to hedge their exposure.
“The shift toward out-of-the-money puts is notable and reminiscent of volatility patterns last seen during the U.S. banking scare in early 2023,” said analytics firm Block Scholes in a Wednesday update.
Meanwhile, Ethereum’s volatility structure has begun to recover, but the BTC options curve reflects elevated fear and diminished upside expectations. With traders recalibrating to the new environment, the once-optimistic atmosphere has given way to caution—and the $80K level has become a critical line of defense.
