BTC Options Change as Traders Monitor BTC Turning Bearish

Takeaways from the conference:

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

• The Bitwise analysts argue that deep corrections in the market often precede rebounding, and frame it as an a “contrarian buying window”.

BitcoinBTCThe price of Bitcoin (BTC) fell on Thursday to $107,600, making traders wonder whether 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. The Bitcoin options market is a source of concern for traders, particularly amid the increasing miner withdrawals. This has pushed the support level to $108,000 into question.

Bitcoin’s options delta skew has risen above 10%. This shows that traders pay a premium to sell put options. In neutral conditions, the indicator ranges from -6% to +6%. The skew is worsening since Friday. This suggests that traders have become more skeptical about Bitcoin’s upward momentum.

The market’s sentiment has been affected by US President Donald Trump’s announcement that the US-China trade war is still ongoing. 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 pressures were increasing. The indicator reached its highest value in 30 days. The average cryptocurrency trader is optimistic. Therefore, a neutral ratio of put to call tends at around -20%. This favors the option called.

Bitcoin derivatives only reflect the worsening US economics

Gold’s all-time record high was not the only one affected by the investors’ change in attitude, which is evident in Bitcoin’s recent surge. 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.

Investors are now willing to take a lower return in exchange for the safety of assets backed by the government. While gold rose to $4,300 in September, a 23% increase, 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’

Concern has also been raised about the movements of addresses linked to Bitcoin miners. Data CryptoQuant’s analysis shows that over the last seven days miners have deposited over $5 billion worth of BTC on exchanges, which is the biggest outflow since the beginning of 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-tolerant.

This is an article for informational and educational purposes. It is not meant to provide investment or legal advice. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.