- Bitcoin put options now dominate over 60% of options volume, signaling a return to fear levels last seen during the 2023 bear market.
- Friday’s expiry saw $2.2 billion in BTC options lapse with a bearish put/call ratio of 1.24, sparking notable price instability.
- Despite elevated market fear, Bitcoin rebounded quickly after dipping below $80,000, showing resilience amid increased volatility.
Bitcoin traders are increasingly turning to put options, signaling a stronger bearish sentiment as fear intensifies across the market.The premium levels of Put options matched their highest value from the Bitcoin bear market near $20,000 in 2023. On Binance, more than 60 percent of the options volume now consists of puts, reflecting a high demand for downside protection.
A recent options expiry event further unsettled the market. On Friday, more than 26,000 Bitcoin options expired with a put-to-call ratio of 1.24. This ratio, which reflects a bearish tilt, is higher than previous expiry cycles where the figure was significantly lower. The notional value of these expiring options reached $2.2 billion, contributing to volatility as traders adjusted their positions.
Fear index drops sharply as whales accumulate puts
During that week the Crypto Fear and Greed Index experienced a major decline from 44 to 28 which reflected changing perceptions within the market. The market decline allowed whale traders to increase their put option positions with a specific focus on upcoming options expirations. Market participants are taking on increasingly more June expiry put options which demonstrates their plan to maintain protective measures through upcoming months.
Despite the heightened demand for downside protection, Bitcoin’s price has shown resilience. The asset briefly dipped below $80,000 before rebounding to $84,000, which also marked the options market’s maximum pain point. At the time of reporting, Bitcoin was trading at $83,219.43, reflecting continued volatility but limited breakdown.
Current data shows put options continue to dominate in the near term. However, from late April onward, call options are starting to gain traction, hinting at a shift in sentiment for Q2. Even so, the volume of put options remains historically high, with some contracts targeting downside levels such as $70,000 and $78,000.
Overall crypto market activity has decreased, reaching the lowest volumes since late 2024. Stablecoin supply remains high, but fund inflows have stalled. This slowdown reflects cautious positioning by both retail and institutional investors, with whales increasingly hedging against future market swings.
