The Bitcoin options market shifts as traders watch BTC turn bearish

The key takeaways

• The growing demand for BTC miner deposits and put options highlights the increasing caution of traders, despite the price stability near $108,000.

• Bitwise’s analysts claim that market corrections are often preceded by deep falls in sentiment. “contrarian buying window”.

BitcoinBTCThe price of Bitcoin (BTC) fell on Thursday to $107,600, leading traders to ask if the flash crash on Friday was the beginning of the end for the bull-run that had peaked on the 6th October at its all-time peak. There is an alarming warning in the Bitcoin option market, which has traders nervous, as the miner exodus continues to increase.

Bitcoin delta skew is now above 10%. Professional traders are buying put (sell), a bearish sign. In neutral conditions, the indicator ranges from -6% to +6%. It is important to note that the skew of this indicator has worsened from Friday. This indicates traders’ growing doubts about Bitcoin’s bullish momentum.

US President Donald Trump’s confirmation of the continuation of the US-China trade war has also affected market sentiment. Trump has threatened further trade restrictions with China after its suspension of US Soybean purchases. according Yahoo Finance. Uncertainty surrounding US economic statistics amid the current government shutdown also adds to the pressure.

Deribit’s demand for protection against the downside surged Thursday, when trading volumes of put options outnumbered call options 50%. It was a sign that market pressure was increasing. This indicator has reached its highest point in more than 30 days. A neutral reading of the put-to call ratio is around -20% for cryptocurrency traders, which favors calls.

Bitcoin derivatives only reflect the worsening US economics

As gold reached a new record on Thursday, investors’ sentiments have shifted. Demand for short-term US government bonds also spiked, even as two Federal Reserve Governors signaled further interest rate cuts in October — a move that typically reduces the appeal of fixed-income investments.

The yields of the US 2-year Treasury fell to the lowest levels in over three years. This shows that investors will accept lower returns for government-backed assets. While gold rose to $4,300 in September, a rise of 23%, the central bank’s gold reserves now exceed their US Treasury holdings. according Reuters.

Despite positive developments in the tech sector, including chipmaker TSMC’s (TSM) upgraded 2025 outlook and strong quarterly results from Bank of America and Morgan Stanley, the S&P 500 fell 0.9% on Thursday. Dow Jones US Select Regional Banks Index fell 4.4% following two financial companies reporting losses on the private credit market. according The Financial Times

Related: SEC chair: US is 10 years behind on crypto, fixing this is ‘job one’

The movement of Bitcoin addresses that are linked with bitcoin miners has also caused concern. Data CryptoQuant reports that in the seven-day period ending July 1, miners had deposited more than $5.5 billion (or 51,000 BTC) at exchanges. This is the highest outflow of bitcoins since July. Analysis noted that this behavior usually precedes price declines, since miners are historically among Bitcoin’s biggest holders.

Bitwise analysts pointed out that the extreme drop in sentiment has often been experienced by Bitcoin traders. “marked favorable entry points,” Add to that “the recent correction was driven largely by external factors.” Bitwise head of research André Dragosch added that Friday’s liquidation event has set the stage for a “contrarian buying window.”

Bitcoin could still fall further, however, the increase in put option demand should not be interpreted as an indication of a sustained downward trend, because external factors may have made traders less risk-averse.

This is not legal or investment advise. It is only intended as a general guide. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.