- Bitcoin put options surged to 28% of daily market volume.
- Bearish bets focus on near-term puts at $10.4K–$10.8K.
- Skew turned negative, echoing October 11 crash sentiment.
In the past 24 hours, the Bitcoin options market has seen a significant rise in bearish sentiment. According to data from Greekslive, put options accounted for 28% of the total market volume, translating to more than $1.15 billion in trading activity. This sudden increase suggests that many traders are hedging against potential short-term price drops or speculating on a decline.
The majority of these put options were concentrated around strike prices between $10,400 and $10,800. These are known as out-of-the-money (OTM) puts, which only become profitable if Bitcoin falls sharply. This trend signals that traders are bracing for increased downside risk, even though Bitcoin’s current price remains far above these strike levels.
Skew Turns Negative, Echoing October Crash Concerns
Another key indicator highlighting this shift in market mood is the negative turn in options skew. Skew refers to the difference in implied volatility between call and put options. A negative skew typically points to increased demand for puts over calls—an indicator of bearish sentiment.
This market behavior mirrors what was seen just before the October 11 flash crash, where Bitcoin experienced a sudden and sharp price drop. With traders once again betting heavily on near-term downside, it suggests lingering fear in the market about another potential dip.
What This Means for Bitcoin Investors
While some traders may be using these puts as a hedge against a possible correction, the sheer volume and focus on deeply OTM puts indicate more than just caution—it reflects growing pessimism. If this sentiment continues, it could weigh on short-term Bitcoin prices, especially if other macroeconomic or crypto-specific events add pressure.
However, it’s important to note that options activity doesn’t always predict price direction. Sometimes, such moves are driven by institutions managing risk or speculators betting on rare events. Still, the current data suggests a cautious road ahead for Bitcoin bulls.
