Want proof of the drastic change within the crypto market sentiment recently? Look no additional than Deribit’s choices market, the place the $80,000 bitcoin (BTC) put choice, providing draw back safety beneath the mentioned stage, is now the preferred wager.
It is a 180-degree change from early this yr when name choices at six-figure ranges garnered essentially the most curiosity amongst merchants.
As of writing, the variety of open positions within the $80,000 put choice tallied 10,278 contracts, equating to a notional open curiosity of $864.26 million, in accordance with knowledge supply Amberdata. That makes it the preferred choices play on Deribit, the place one contract represents one BTC.
It additionally marks a major positioning shift from early January when the decision choice on the $120,000 strike was the preferred wager with an open curiosity of practically $1.5 billion. Final month, the $100,000 name took the crown.
The positioning shift signifies merchants have reassessed upside expectations amid the market swoon and lingering financial uncertainty. BTC fell 11.66% within the first quarter, with costs slipping beneath $80,000 at one level as President Donald Trump’s tariffs shook Wall Road. Moreover, disappointment over the dearth of recent purchases within the U.S. strategic reserve weighed over costs.
Later Wednesday, Trump is anticipated to announce sweeping reciprocal tariffs on its buying and selling companions, which may result in a full-blown commerce battle. That has BTC merchants chasing draw back safety.
“BTC volatility smiles have shifted sharply in the direction of OTM places, reaching ranges not seen for the reason that US Banking Disaster in March 2023. ETH’s short-tenor volatility smile skews have partially recovered from their robust tilt towards OTM put,” analytics agency Block Scholes mentioned in its market replace Wednesday.