Bitcoin (BTC) Positioning Shift: From $140K Calls to $80K Puts

The sentiment around Bitcoin (BTC) options has drastically shifted from bullish to bearish in recent weeks, with puts now leading in open interest. Since October 8, the price of Bitcoin has fallen over 25% to around $91,000. Traders, who previously favored call options with high strike prices like $140,000, have turned to buying puts for protection against potential declines. The $140,000 call option has seen its open interest decrease to $1.63 billion, while the $85,000 put leads with $2.05 billion in open interest. This reversal in positioning reflects growing concerns over market resilience amid macroeconomic uncertainties. Short-dated puts are showing the largest trading volumes, indicating a heightened demand for downside protection. Analysts note that while technical indicators suggest the market may be oversold, the prevailing bearish sentiment remains strong, influenced by factors such as potential monetary policy shifts. However, some indicators hint at smart-money accumulation at perceived undervalued levels, suggesting that traders may be eyeing future opportunities even amid current fears.

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