Bitcoin Market Sentiment Shifts as $80K Put Becomes Most Popular Bet
The Bitcoin (BTC) options market is signaling a major shift in sentiment, with traders increasingly hedging against potential downside risks. The $80,000 put option has become the most popular contract on Deribit, marking a stark contrast from earlier this year when bullish calls dominated the market.
Key Highlights:
- Open interest in the $80,000 BTC put option has surged to 10,278 contracts, totaling $864.26 million—the highest among all BTC strikes on Deribit.
- Traders are seeking downside protection amid economic uncertainty and potential trade tensions.
Market Sentiment Reverses
The crypto options market reflects changing investor sentiment, as traders now prioritize downside protection. This marks a significant shift from early 2025, when call options at $100,000 and $120,000 levels were the most sought-after bets.
Data from Amberdata reveals that open interest in the $80,000 put option now stands at $864.26 million, making it the leading options trade on Deribit, where each contract represents one BTC. This trend indicates that traders are growing cautious about Bitcoin’s near-term price trajectory.
Factors Influencing the Shift
Bitcoin’s price declined 11.66% in Q1 2025, briefly dipping below $80,000. Market uncertainty has been fueled by global economic instability, concerns over U.S. trade policies, and a lack of new purchases for the U.S. strategic reserve. Additionally, President Donald Trump’s recent tariff announcements have added pressure to the market, prompting investors to hedge against further downside risks.
On Wednesday, Trump is expected to unveil a sweeping set of reciprocal tariffs on key trading partners. Analysts warn that these measures could escalate into a full-scale trade war, adding to market volatility and further increasing demand for protective BTC options.
Volatility Trends
According to analytics firm Block Scholes, Bitcoin’s volatility structure has shifted sharply toward out-of-the-money (OTM) puts, reaching levels not seen since the U.S. regional banking crisis in early 2023. Ethereum (ETH) has also shown signs of volatility skewing toward puts, though short-term trends suggest some stabilization.
As traders brace for more economic turbulence, the growing preference for downside protection highlights a more cautious stance in the crypto market. Whether this trend continues will likely depend on upcoming macroeconomic developments and regulatory shifts.
Conclusion
The growing preference for downside protection underscores the market’s cautious approach amid economic and geopolitical uncertainties. While Bitcoin remains a highly volatile asset, traders and investors will likely continue monitoring macroeconomic trends and regulatory developments before making their next move.
Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, and investors should conduct their own research and consult with a professional financial advisor before making any investment decisions.
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