Want proof of the drastic change within the crypto market sentiment these days? Look no additional than Deribit’s choices market, the place the $80,000 bitcoin (BTC) put possibility, providing draw back safety beneath the stated degree, is now the most well-liked wager.
It is a 180-degree change from early this 12 months 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 possibility tallied 10,278 contracts, equating to a notional open curiosity of $864.26 million, in accordance with information supply Amberdata. That makes it the most well-liked choices play on Deribit, the place one contract represents one BTC.
It additionally marks a major positioning shift from early January when the decision possibility on the $120,000 strike was the most well-liked wager with an open curiosity of almost $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 contemporary 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 conflict. That has BTC merchants chasing draw back safety.
“BTC volatility smiles have shifted sharply towards OTM puts, reaching levels not seen since the US Banking Crisis in March 2023. ETH’s short-tenor volatility smile skews have partially recovered from their strong tilt toward OTM put,” analytics agency Block Scholes stated in its market replace Wednesday.
