Bitcoin Options Market Turns Bearish as $80K Put Becomes Top Trade
Investor sentiment in the crypto market has taken a notable bearish turn, with the $80,000 bitcoin (BTC) put option now emerging as the most favored bet on Deribit, the world’s largest crypto options exchange.
The shift marks a stark contrast from earlier this year when traders piled into bullish call options targeting six-figure price levels for BTC. Now, downside protection appears to be the priority.
Data from Amberdata shows that the $80K put option has amassed 10,278 open contracts, amounting to roughly $864 million in notional open interest. That makes it the most active BTC options strike on Deribit, where each contract represents one bitcoin.
This trend represents a major sentiment pivot from January, when the $120K call led open interest with nearly $1.5 billion. In February, the $100K strike took the top spot. Now, puts are firmly in the lead, signaling rising caution among traders.
Bitcoin’s 11.66% decline in Q1, including a brief dip below $80,000, has shaken market confidence. Contributing factors include geopolitical and economic concerns—chiefly the anticipation of a new round of tariffs from former President Donald Trump, which rattled traditional markets and spilled into crypto. Lack of additional buying from the U.S. strategic reserve has also weighed on price expectations.
Later today, Trump is expected to unveil broad reciprocal tariffs targeting U.S. trade partners—an announcement that could further sour market mood and escalate fears of a global trade conflict.
According to analytics firm Block Scholes, the options market is already reacting. “BTC volatility smiles have sharply skewed toward out-of-the-money (OTM) puts, reaching extremes last seen during the U.S. regional banking turmoil in March 2023,” the firm noted in a Wednesday report. “ETH’s shorter-dated volatility smile has eased somewhat, but still leans toward protective puts.”
As macro uncertainty looms large, bitcoin traders appear to be preparing for more turbulence ahead.
