Heavy demand for short-dated put options signals growing bearish sentiment amid Fed policy and dollar strength concerns.
Bitcoin traders are aggressively purchasing put options on Deribit, targeting strike prices as low as $52,000. The surge in bearish bets follows a broader market pullback driven by a hawkish Federal Reserve and a stronger U.S. dollar, which have weighed on risk assets.
Recent data shows heavy buying in near-term puts, including 337 contracts for June 22 $61,500 strikes, 380 for July 3 $55,000 strikes, and 314 for July 31 $52,000 strikes. These out-of-the-money options reflect expectations of further downside, with traders hedging against deeper declines.
The shift in sentiment coincides with outflows from bitcoin ETFs and complications surrounding major BTC holder Strategy, adding to downward pressure. One options contract on Deribit represents one BTC, amplifying the impact of these trades.