Crypto traders are massively betting on BTC falling to $75K amid market uncertainty

The situation in the derivatives market is heating up. Crypto traders are actively seeking protection against further declines in Bitcoin’s price, intensively purchasing short-term put options with a strike price of $75,000 on the Deribit platform. Analytical firm Glassnode has recorded a sharp increase in interest in such hedging, starting from the moment when the spot price of BTC dropped below $94,000 earlier this week. The current Bitcoin price is at $78.75K, showing a 4.85% decrease over the past 24 hours.

The market has sent a clear signal of bearish sentiment. According to Glassnode data, put options (sell contracts) accounted for over 65% of all options activity in the past week. This indicates that traders are actively hedging themselves against further correction, expecting a repeat of the April low of around $74,000.

The options market has shifted to a negative stance

There has been a clear reversal in trader sentiment. Previously, the dominant position was in call options with a strike price of $140,000, but now attention has shifted to puts at $85,000, and then to protection at $75,000. This shift demonstrates a radical change in market participants’ expectations – from optimistic forecasts of a rise to caution and preparation for the worst-case scenario.

The $75,000 level is of particular importance to traders. This price point corresponds to the lows reached in April and serves as a psychological benchmark below which market participants fear further collapse.

Volatility strategies reveal deep concerns

Glassnode analysts have noted more complex investment strategies employed by traders. In addition to direct hedging, market participants actively use volatility spreads: simultaneously selling short-term contracts with high volatility and buying long-term positions. This approach allows traders to profit from market disruptions and potential shocks, preparing for possible turbulence.

According to Glassnode’s assessment, the current configuration of the options market does not yet indicate a bottom and shows traders’ readiness for an even deeper decline. This suggests that a 25% drop (to the current $78.75K from higher levels) may only be an intermediate point, not a complete reversal.

The combination of these signals – high put volume, shifting from high to low strikes, and the use of volatility spreads – indicates that professional traders are carefully monitoring risks and preparing their portfolios for potential volatility in the Bitcoin market.