Bitcoin: Traders expand 'defensive positions' as concerns grow over falling below $80,000

Suehyeon Lee

Summary

Bitcoin traders are expanding defensive positions, such as buying put options, due to concerns about falling below $80,000.
Nick Foster, co-founder of Derive, said option skew is falling and open interest in puts is concentrated at strikes below $80,000.
Foster said the emergence of a 'backwardation' structure where short-term volatility exceeds long-term volatility could mean large price volatility will be reflected around the year-end to new-year period.

Bitcoin (BTC) traders appear to be strengthening defensive positions, such as increasing purchases of put options, in preparation for the possibility of dipping below $80,000 in early in the new year.

On the 2nd (local time), according to CoinDesk, Nick Foster, co-founder of Derive, said, "Option skew is clearly falling, and in the December 26 expiry range, open interest in puts is concentrated particularly at the 84k·80k strikes."

He analyzed, "This positioning means the market views the possibility that BTC will fall below $80,000 in early 2026 as meaningful."

Bitcoin is currently trading around $87,000, which is about 30% lower than the peak recorded on October 8 (in the $126,000 range). Foster said, "I do not see the downtrend as over," adding, "a backwardation structure—short-term volatility higher than long-term volatility—has emerged, so there is a high likelihood that large volatility will be reflected in prices over the year-end to new-year period."

BTC