According to data from Deribit, the put-to-call ratio of open interest in Bitcoin options ahead of this week’s five-week expiration date has risen to over 1, which is considered a bearish signal for the market. A ratio above 1 means there are significantly more open puts than calls. This shows that more investors are betting or hedging against falling prices rather than rising prices.
Deribit data shows that among options expiring this Friday, the largest cluster of open interest is puts at the $58,000 strike price, while there are also large puts at the $52,000 and $48,000 strike prices.
Bitcoin options traders have increased bets on further losses. Asset manager ETC Group wrote in a note on Monday:
“The increase in Bitcoin options open interest is primarily due to an increase in relative put open interest, which is consistent with the asset’s recent price correction and demonstrates a significant increase in demand for downside protection. Additionally, the put/call volume ratio This is also shown by the surge in January 25-delta option bias (the difference in implied volatility of an option with a delta value of 0.25 relative to an at-the-money option).”
The report also adds that the implied volatility of Bitcoin options has increased during the recent price decline, with the implied volatility of at-the-money Bitcoin options currently expiring in one month rising to 50.5%, and the volatility of the duration The structure is now inverted, with short-term options having significantly higher implied volatility than longer-term options, reflecting the market’s heightened concern and need for protection from recent Bitcoin price fluctuations.
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