Lead
Bitcoin dipped below $100,000 this week, triggering a wave of downside hedging on Deribit where the $80,000 and $90,000 strike puts now command open interest rivaling popular calls at $120,000 and $140,000. Deribit—which controls more than 80% of global crypto options flow—reports notional open interest above $40 billion, signalling traders are paying up for protection as macro headwinds weigh on ETF inflows. (CoinDesk)
Positioning Snapshot
- Open interest in the BTC-28NOV25-80000-P contract tops 6,467 BTC, while the March 2026 $80,000 put carries 977 BTC in open interest. (Deribit API)
- $90,000 puts remain heavily trafficked as traders hedge spot exposure accumulated during the summer rally.
- Higher-strike calls such as $120,000 and $140,000 still feature large open interest, though much of it stems from covered-call overwriting rather than outright bullish bets.
- Total options open interest above $40 billion marks one of the strongest prints since bitcoin ETFs launched in January.
Macro Drivers
- Bitcoin has dropped roughly 18% from the all-time high above $126,000 amid hawkish Federal Reserve rhetoric and four consecutive sessions of ~$1.3 billion in net outflows from U.S. spot ETFs.
- Forced deleveraging contributed to more than $1 billion in long liquidations at the recent lows, accelerating the slide to $98,000 intraweek.
- Analytics firm QCP Capital warns of a feedback loop in which weaker spot prices trigger additional ETF redemptions, further pressuring BTC.
Levels to Watch
- Spot reclaiming and holding $103,000–$105,000 would alleviate immediate downside pressure and force shorts to cover.
- Sustained put-buying at $80,000 suggests dealers may gamma-hedge by selling spot into weakness, potentially exacerbating downside if the level is threatened.
- On the upside, a break above $110,000 would flip the December risk-reversal skew and could force defensive call-covering.
Disclaimer: Derivatives trading involves significant risk and is not suitable for all investors. This article is for informational purposes only.