Bitcoin traders are increasingly positioning for a deeper decline, with strong demand for options that would profit if the selloff accelerates.
Market participants have been actively buying put options that would pay out if Bitcoin drops toward the $52,000 level in the coming weeks, reflecting rising expectations of further downside.
Over the past 24 to 48 hours, data from Deribit compiled by Laevitas shows heavy flows into short- and near-term puts across expiries from June 22 to July 31. Notable trades included 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 act as downside protection, giving buyers the right to sell Bitcoin at a fixed price. If BTC falls below that strike, the option gains value as the holder can sell above market price. On Deribit, each contract represents one BTC.
The strong demand for out-of-the-money puts signals a distinctly bearish shift in sentiment, driven by a combination of macroeconomic and crypto-specific pressures.
A more hawkish Federal Reserve has strengthened the U.S. dollar, while Bitcoin ETFs continue to experience steady outflows. At the same time, Strategy—the largest publicly traded corporate holder of Bitcoin—is facing growing financial pressure.
Its preferred stock, STRC, has dropped below its $100 par value, adding strain to its broader Bitcoin accumulation strategy.
Arca CIO Jeff Dorman said the situation is becoming increasingly delicate, suggesting the company may need to either sell a significant amount of BTC or risk further deterioration across its capital structure amid rising uncertainty.
At the time of writing, Bitcoin was trading near $62,400, down about 0.8% since midnight UTC, after briefly reaching highs near $67,000 earlier in the week.
