Bitcoin’s rally toward $80,000 is driving traders to place multimillion-dollar bets on another move higher, even as options markets continue to show strong demand for downside protection, according to Laevitas.
On Monday, traders bought 2,000 BTC call options with an $82,000 strike and a Sept. 4 expiration, based on data from Laevitas. The contracts give buyers exposure to a potential move above $82,000 before the options expire.
The position required about $2.9 million in premiums upfront. That amount is the buyers’ maximum loss if Bitcoin remains below the strike price through expiration, while a sufficiently large move above $82,000 could produce substantially greater gains.
The options activity comes after Bitcoin posted a dramatic weekly advance. BTC was trading around $80,000, compared with roughly $64,000 a week earlier, marking a gain of about 25% in seven days.
The rally has been fueled by several developments, including the U.S. Treasury’s larger bond-buyback program, continued inflows into spot Bitcoin ETFs and forced liquidations of short positions that added momentum to the move.
Bitcoin Options Reveal a Cautious Market
The bullish call purchases have not eliminated concerns about a potential pullback. The broader options market on Deribit continues to show demand for hedging against downside volatility.
Traders monitor a measure known as skew, which compares the implied volatility priced into call and put options. Negative skew generally signals that puts are commanding a larger premium as traders seek protection against falling prices.
Laevitas data showed Bitcoin’s seven-day skew moving to -5.17% from +2.36%. Ethereum’s reading also turned more negative, falling to -12.15% from +3.41%.
Laevitas said the shift reflected aggressive demand for downside protection following Bitcoin’s sharp rally and its pause in the upper-$70,000 range. Rather than signaling an outright bearish reversal, the options market appeared to be pricing in the possibility of significant event-driven volatility later in the week.
Bitcoin has since moved above $80,000, but its seven-day skew remains negative. That suggests traders are simultaneously positioning for additional upside and protecting themselves against a possible reversal from the latest highs.
