"Bitcoin $80,000 Put Option Buying Surge... Hedging Downside Risk"

As the cryptocurrency market is expected to weaken, option traders are actively buying Bitcoin (BTC) $80,000 put options.

On the 2nd (local time), CoinDesk cited Deribit data, stating, "The current open interest (OI) for Bitcoin $80,000 put options amounts to 12,078 contracts ($864.26 million)," and "it holds the highest open interest among all Bitcoin options." It further noted, "This contrasts with the high open interest seen in January and March for $120,000 call options and $100,000 call options, respectively," adding, "Investors' expectations for cryptocurrency appreciation have weakened compared to before."

The reason traders are showing interest in put options is cited as hedging against downside risk. The media reported, "Traders are actively buying put options to hedge against a Bitcoin decline," and "with the announcement of large-scale retaliatory tariffs expected on the afternoon of the 2nd (local time), the possibility of a trade war is increasing, putting downward pressure on the market."

Meanwhile, a put option refers to the right to sell an asset at a predetermined strike price. It is generally considered advantageous to sell options when the market is sideways or showing a mild uptrend.

As of 10:15 PM, Bitcoin is trading at $84,826, up 1.28% from 24 hours ago, based on the Binance USDT market.

As the cryptocurrency market is expected to weaken, option traders are actively buying Bitcoin (BTC) $80,000 put options.