Bitcoin traders load up on bearish bets all the way down to $52,000
Key takeaways
- Bitcoin BTC$62,575.01 traders are scrambling to position for a deeper selloff, snapping up put options that would deliver big payouts if prices slide all the way down to $52,000 in the coming weeks.
- In the past 24 to 48 hours, crypto exchange Deribit saw heavy buying of short- and near-dated put options, spanning expirations from June 22 to July 31, according to data tracked by Laevitas.
- A put option is likely an insurance against market swoons.
Bitcoin BTC$62,575.01 traders are scrambling to position for a deeper selloff, snapping up put options that would deliver big payouts if prices slide all the way down to $52,000 in the coming weeks.
In the past 24 to 48 hours, crypto exchange Deribit saw heavy buying of short- and near-dated put options, spanning expirations from June 22 to July 31, according to data tracked by Laevitas. Notable flows included:
A put option is likely an insurance against market swoons. A put buyer locks in the right to sell bitcoin at a specific strike price in the future. If the price drops below that strike price, the buyer can still sell at the predetermined higher price, thus pocketing the difference as profit. On Deribit, one options contract represents on BTC.