Preparation for a Fall in Bitcoin: Institutional Investors Are Increasing Their Short Positions!

While institutional Bitcoin (BTC) investors strengthen their short positions, a critical data continues to unsettle the market.

Data provided by Deribit, the largest cryptocurrency options exchange, was interpreted as a Bitcoin decline.

The distribution of open positions in Bitcoin options revealed that investors' demand for downside protection has increased. The implied volatility of short-term Bitcoin options has signaled that price fluctuations are expected in the near future.

Following Bitcoin's latest price correction, the increase in the number of put options attracted attention, indicating that investors' demand for protection against decline has increased.

Preparing for the fall

According to Deribit data, the put-call ratio of Bitcoin options rose above one before the weekly expiration date last Friday. This was interpreted as a bearish signal for the market.

Institutional investors, who could not remain unresponsive to the decline signal, strengthened their short positions.

Deribit data showed that the largest cluster of open interest was in put options at the $58,000 strike price, with a significant amount of put options also remaining at the $52,000 and $48,000 strike prices.

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