Bitcoin Options Market Shows Bearish Sentiment as $1M Block Trade Signals Concerns Over Price Decline
As the first quarter concluded on Monday, a significant bitcoin (BTC) options trade on Deribit highlighted growing bearish sentiment in the market. The trade, a block transaction, involved 1,180 contracts of the $70,000 put option set to expire on April 25, with a premium exceeding $1 million, according to data from Amberdata.
A put option grants the buyer the right, but not the obligation, to sell the underlying asset at a specified price at a future date. The large purchase of this put option suggests that the trader expects BTC’s price to fall below $70,000, down from its current level of around $84,000.
Block trades like this are typically large, privately negotiated transactions conducted outside of the public market to avoid influencing the prevailing market rate.
In addition to this block trade, there were other notable options strategies in play, such as a put ratio spread involving long positions in the $75,000 strike put and short positions in the $70,000 put, as well as a risk reversal involving a long $90,000 call and a short $70,000 put. These moves were highlighted by Tony Stewart, founder of Pelion Capital.
This bearish activity follows previous purchases of put options with expiration dates in early April, specifically in the $78,000 to $85,000 strike range, as well as rising demand for $76,000 puts expiring on April 25. Overall, BTC puts are trading at higher premiums than calls, indicating a bearish outlook for bitcoin, particularly through the May-end expiry.
The elevated demand for puts suggests that market participants are preparing for potential downside, likely due to concerns over external factors, such as President Donald Trump’s upcoming announcement on reciprocal tariffs. An aggressive tariff decision could exert pressure on risk assets, including cryptocurrencies, further amplifying market jitters.
