$80,000 Bitcoin Put Option Becomes Most Popular Bet on Deribit
Recent shifts in sentiment within the crypto market are evident from Deribit's options market. The $80,000 bitcoin (BTC) put option has become the most popular choice among traders, signaling a significant change in outlook.
- Current open positions for the $80,000 put option total 10,278 contracts, with a notional open interest of $864.26 million.
- This contrasts sharply with early 2023 when six-figure call options were favored, particularly the $120,000 strike with nearly $1.5 billion in open interest.
- The recent downturn saw BTC prices fall 11.66% in Q1, touching below $80,000 amid economic uncertainties and tariff announcements by President Trump.
- Traders are increasingly seeking downside protection, reflecting reassessed expectations for BTC's price.
- Market analytics highlight a notable shift towards out-of-the-money puts, reaching levels similar to those during the US Banking Crisis in March 2023.
This positioning indicates a cautious approach among investors amidst ongoing market volatility.