Bitcoin (BTC $87,690.79) has dropped sharply this month, sliding over 25% to around $83,700, as some traders brace for further downside.
Blockchain analytics firm Glassnode reports that traders have been actively purchasing short-term BTC put options at the $75,000 strike price on Deribit since Bitcoin fell below $94,000 earlier this week.
The $75K put signals a bet that Bitcoin could dip below that level, reminiscent of the early April low near $74,000. Glassnode commented on X: “The options market isn’t signaling a bottom yet and is leaning toward the risk of a deeper move.”
CoinDesk recently highlighted a clear bearish shift in the Bitcoin options market. The $85,000 put option has overtaken the previously popular $140,000 call option as the dominant trade.
Put options have represented over 65% of total options activity in the past week, pointing to aggressive downside hedging by traders. Glassnode noted that many are also exploiting volatility spreads, selling short-dated volatility while buying longer-dated contracts to capitalize on market dislocations.
