Overview
In a notable shift in the crypto market sentiment, the $80,000 put option has emerged as the leading choice among traders on Deribit. This option represents a significant change from earlier this year, when high-value call options dominated interest.
Key Facts:
- Open interest in this put option has reached 10,278 contracts, totaling $864.26 million, marking it as the top trade in all BTC strikes listed on Deribit.
- The surge in the popularity of the $80,000 put reflects traders’ caution in the face of economic uncertainties and the possibility of trade tensions.
In early January, the call option at the $120,000 strike was the favorite, with nearly $1.5 billion in open interest. However, in light of recent market dynamics—including a 11.66% decline in BTC during the first quarter—this put option has gained traction as traders reassess their positions.
As the market braces for potential tariffs from the U.S., traders are increasingly seeking downside protection. This shift indicates a bear outlook as uncertainties loom over the market, pushing traders towards protective options.
Market Commentary
According to Block Scholes, “BTC volatility smiles have shifted sharply towards OTM puts, reaching levels not seen since the U.S. Banking Crisis in March 2023.”
Quotes:
“The $80K put option is now the most popular bet in the market.” (Translated: The sentiment around BTC is shifting, indicating cautiousness among traders.)
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