Bitcoin traders load up on bearish bets all the way down to $52,000

Bitcoin BTC $ 62,831.25 traders are scrambling to position for a deeper selloff, snapping up put options that would deliver big payouts if prices slide all the way down to $52,000 in the coming weeks.

In the past 24 to 48 hours, crypto exchange Deribit saw heavy buying of short- and near-dated put options, spanning expirations from June 22 to July 31, according to data tracked by Laevitas. Notable flows included:

A put option is likely an insurance against market swoons. A put buyer locks in the right to sell bitcoin at a specific strike price in the future. If the price drops below that strike price, the buyer can still sell at the predetermined higher price, thus pocketing the difference as profit. On Deribit, one options contract represents on BTC.

The surge in these out-of-the-money puts reflects a distinctly bearish sentiment and understandably so, as several catalysts are weighing on the market.

A hawkish Federal Reserve is bolstering the U.S. dollar, bitcoin ETFs have seen persistent outflows, and Strategy, the largest publicly listed bitcoin holder, faces mounting pressure.

Strategy's preferred stock, STRC, has plunged to record lows well below its $100 par value, complicating the company’s aggressive bitcoin accumulation strategy.

Arca CIO Jeff Dorman highlighted the precarious situation:"Either sell an enormous amount of BTC and MSTR to help bring $STRC back up near par, and at least buy yourself some time, or continue to watch every part of your cap structure melt because of the uncertainty you've created," he said on X.

As of writing, BTC changed hands near $62,400, down 0.8% since midnight UTC hours, according to CoinDesk data. Prices hit highs near $67,000 early this week.

In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.

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