Bitcoin’s drop to $107,600 is causing traders to rethink their strategies. Amid growing miner outflows and macroeconomic pressures, experts remain bullish on purchasing downturns.

Key takeaways:

• Increased demand for put options among traders indicates rising caution, although prices remain firm near $108,000.
• Analysts from Bitwise suggest previous downturns often lead to rebounds, viewing current market conditions as a valuable buying opportunity.

As Bitcoin flirted with a low on Thursday, concerns about the sustainability of the recent bull run, peaking on October 6, have surfaced. Notably, growing miner outflows are testing the $108,000 support level.

Bitcoin 30-day options delta skew at Derbit (put-call)
Source: laevitas.ch

Recent data indicates a market surrounded by bearish sentiment, exemplified by the rise in Bitcoin’s options delta skew above 10%. This indicator often changes in the wake of negative market news, reflecting professional traders’ increased demand for downside protection.

Furthermore, ongoing issues regarding U.S.-China trade relations and uncertainties linked to the federal government’s data release complicate market sentiment further.

Bitcoin options volumes put-to-call at Deribit
Source: laevitas.ch

Interest in protective downside strategies surged on Thursday with a 50% increase in put options trading volumes over call options, hitting highs not seen in over a month. This seems to defy the typical optimistic nature of cryptocurrency traders, indicating prevalent anxiety.

Despite some positive signs from tech stocks and positive forecasts from financial institutions, the broader market saw declines.

Data from CryptoQuant reveals substantial movement from miner-linked accounts, with over 51,000 BTC hitting exchanges recently — typically a precursor to price declines.

Bitwise’s André Dragosch believes despite the risk, some downturns are paving the way for favorable buying moments, indicating the external factors have merely increased traders’ wariness.