Data shows traders on Derive.xyz are preparing for a drop in bitcoin’s price over the next few weeks.
- Over $54 million in bitcoin put options expiring July 11
- Put options make up more than 70% of recent BTC trading volume
- Traders on Derive are more cautious than on other platforms
Bitcoin Options Data Shows Bearish Sentiment
Traders on Derive.xyz are showing signs of worry about bitcoin’s price. Around 20% of all bitcoin options open interest on the platform is in put options that expire July 11. The strike prices are set at $85,000, $100,000, and $106,000, and they add up to over $54 million.
A put option lets someone sell bitcoin at a set price before a deadline. Buying a put usually means the trader expects the price to fall. This data suggests many traders are preparing for a possible dip in bitcoin value.
Most Trading Volume Now in Put Options
According to Nick Forster, founder of Derive, more than 70% of bitcoin options trades in the last 24 hours were puts. Forster said this means traders are “on the defensive.” This could be due to market uncertainty or just locking in profits after bitcoin’s recent strong performance, which saw it rise more than 7% last week.
On another platform, Deribit, the pattern looks different. There, traders are buying call options, which show a more optimistic view. They are also selling off their older put options. This may be due to a calmer market as the U.S. prepares for the July 4th holiday weekend.
Ether Traders Expect Price to Rise
While bitcoin traders are cautious, sentiment around ether (ETH) is more positive. On Derive, 30% of all ether options are focused on call options at a $2,900 price, and 10% are at the $3,200 mark.
This optimism may be linked to ETHCC, a major Ethereum conference set in Cannes. These events often include big announcements that could help the Ethereum ecosystem grow, increasing interest in ether.
Source: coindesk.com
