Bitcoin traders are ramping up bearish positioning, with growing demand for options that would benefit if the market continues to fall.
Investors are increasingly buying put options that would pay off if Bitcoin declines toward $52,000 in the coming weeks, reflecting rising expectations of a deeper correction.
Data from Deribit, tracked by Laevitas, shows a surge in short- and near-term put activity over the past 24 to 48 hours, spanning expirations from June 22 to July 31. Key flows include June 22 $61,500 puts (337 contracts), July 3 $60,000 puts (116 contracts) and $55,000 puts (380 contracts), July 10 $55,000 puts (540 contracts), and July 31 $52,000 puts (314 contracts).
Put options give traders the right to sell Bitcoin at a set price, acting as insurance against downside moves. If BTC falls below the strike price, the option becomes profitable because it locks in a higher selling price. Each Deribit contract represents one BTC.
The concentration of demand in out-of-the-money puts points to a clear shift toward bearish sentiment, driven by both macroeconomic and crypto-specific headwinds.
A more hawkish Federal Reserve has supported the U.S. dollar, while spot Bitcoin ETFs continue to see persistent outflows. Meanwhile, Strategy—the largest publicly listed Bitcoin holder—has come under increasing financial pressure.
Its preferred stock, STRC, has fallen below its $100 par value, complicating its broader Bitcoin accumulation approach.
Arca CIO Jeff Dorman described the situation as increasingly fragile, warning that the firm may need to either sell significant Bitcoin holdings or risk further strain across its capital structure amid rising uncertainty.
At the time of writing, Bitcoin was trading near $62,400, down around 0.8% since midnight UTC, after briefly touching highs near $67,000 earlier in the week.
