The Bitcoin options market shifts as traders watch BTC turn bearish

Takeaways from the conference:

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

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

BitcoinBTCThe price of Bitcoin (BTC) plunged to $107,600 in the early hours of Thursday morning, prompting some traders to ask if the flash crash on Friday was the beginning or end of a bull run which peaked on the 6th October at a record high. 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 delta skew is now above 10%. Professional traders are buying put options at a higher price, which indicates a bearish mood. This indicator is usually between -6 and +6 under neutral conditions. 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 confirming that the ongoing trade war between China and the US is still going on. Trump has warned that he will further restrict the trade between China and US following China’s suspension of US soya purchases. according Yahoo Finance. The uncertainty around US economic data during the government shutdown is another factor that adds 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. 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 are merely a reflection of the poorer US macroeconomics

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.

Investors are now willing to take a lower return in exchange for assets backed by the government. While gold rose to $4300 in September, up 23 percent, the central bank 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’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 noted that while the Bitcoin options market has warned of a possible further decline in Bitcoin sentiment, extreme falls have occurred before. “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-taking.

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.