Options traders are hedging against further declines after bitcoin’s drop sparks record demand for protective puts at $50,000.
Bitcoin fell to $62,000 as a sharp selloff triggered liquidations and a surge in bearish options activity. The $50,000 put expiring June 26 became the most traded contract on Deribit, signaling demand for downside protection despite prices remaining above that level.
Traders also piled into puts at $65,000 and $55,000 strikes, while the sole call in the top five was at $80,000. The skew toward lower strikes reflects growing concern over a potential correction or tail-risk events in the near term.
The shift in options flow suggests traders are either positioning for further declines or securing insurance against extreme volatility. Bitcoin’s drop follows a period of consolidation above $65,000, with the latest move accelerating bearish sentiment.