"Funds concentrate in Bitcoin (BTC) $20,000 put options…rising demand to hedge against an extreme downturn"

JH Kim

Summary

In the Bitcoin (BTC) options market, put options with a $20,000 strike price were reported to have a notional value of about $596 million, the third-largest among all options.
It said this suggests that, amid heightened geopolitical risks in the Middle East, market participants are preparing for a scenario of a drop of more than 70%.
However, the outlet said the inflows are likely strategic positioning to capture premiums or trade volatility, rather than a simple bearish bet, and noted that the put/call ratio for Bitcoin options nearing expiry is 0.63, with calls still in the lead.

Forecast Trend Report by Period

Funds are increasingly concentrating in Bitcoin (BTC) put options with a strike price of $20,000 in the Bitcoin options market.

On the 19th (local time), cryptocurrency-focused media outlet CoinDesk, citing Deribit data, reported that the notional value of the put option was about $596 million, the third-largest among all options.

The largest positions are call options with strike prices of $125,000 and $75,000, but it is notable that, among put options, funds are piling into the extreme $20,000 level.

This suggests that, amid escalating geopolitical risks in the Middle East, market participants are bracing for a sharp selloff scenario. For the option to pay off, Bitcoin would have to fall more than 70% from its current price.

However, the outlet assessed that these inflows are more likely to reflect strategic positioning to capture premiums or trade volatility rather than a straightforward bearish bet.

In fact, the put/call ratio for Bitcoin options nearing expiry stands at 0.63, indicating calls still dominate.