Overview

A substantial options trade occurring on Deribit showcases a bearish outlook among bitcoin traders. This trade involved an investment exceeding $1 million in $70,000 put options set to expire on April 25. The increasing appetite for bitcoin puts suggests investor concerns about impending economic effects tied to upcoming U.S tariff decisions.

Trade Details

• The options contract involved 1,180 agreements.
• The notable pump in demand for BTC puts stands out as traders brace for financial fluctuations due to anticipated shifts in tariffs.

Insights

The put option provides buyers the right to sell the crypto asset at a specified price. This move signals a bearish expectation, implying a forecasted price drop beneath $70,000, given the current value near $84,000.

Context of Trade

Block trades, such as this one, are often utilized by institutions to secure considerable transactions without impacting the public market rate.

Additional Trades

Other mentioned trades include:

• A put ratio spread, involving long positions in $75,000 and double short positions in $70,000.
• A risk reversal strategy as noted by Tony Stewart, the founder of Pelion Capital.

Market Sentiment

The pricing of puts surpassing that of calls indicates a prevailing negative outlook amidst rising anxiety tied to President Donald Trump’s upcoming tariff announcements, which could unfavorably influence risk assets, including cryptocurrencies.