Bitcoin Options Market Shifts Bearish as Traders Pile Into Downside Protection

Bitcoin’s options market has taken a dramatic turn as traders move away from last year’s ultra-bullish outlook and increasingly position for potential downside. After months of enthusiasm around high-strike call options—particularly the previously dominant $140,000 call, which once held over $2 billion in open interest—sentiment has sharply reversed. The same $140,000 call now sits at $1.63 billion, while the $85,000 put has surged ahead with $2.05 billion in open interest, making it the most popular BTC options contract on Deribit.

This shift aligns with Bitcoin’s recent price slide. BTC has dropped more than 25% since Oct. 8, falling to around $91,000, prompting traders to hedge aggressively. Puts at $80,000 and $90,000 have also overtaken high-strike calls, further signaling mounting bearish expectations. Although overall call interest remains larger, put options are trading at a noticeable premium, indicating elevated demand for downside protection.

Deribit’s Chief Commercial Officer Jean-David Pequignot noted that traders are increasingly loading up on short-dated puts between $84,000 and $80,000. Front-end implied volatility hovers near 50%, with a significant put skew of 5–6.5%. Likewise, data from decentralized options platform Derive.xyz shows its 30-day skew falling from -2.9% to -5.3%, reflecting growing appetite for bearish exposure.

Researchers also highlighted a large concentration of BTC puts building around the Dec. 26 expiry, especially at the $80,000 strike. With U.S. job market concerns lingering and odds of a December rate cut barely above 50%, there’s limited macro support to revive bullish sentiment.

Still, some signs suggest the sell-off could lose momentum. Bitcoin’s Fear & Greed Index has plunged to 15, and RSI is nearing oversold territory at 30. Notably, whale wallets holding over 1,000 BTC have begun accumulating again, hinting at strategic buying at discounted levels.

In the short term, downside risks remain dominant, but historically, extreme bearish sentiment has often preceded sharp reversals—leaving room for opportunistic traders to watch for a potential shift.