BTC options market signals further downside as traders load up on puts

BTC options markets keep expanding their volumes, showing demand for risk mitigation. The current condition of the options market suggests traders are anticipating a further downside for BTC. 

BTC options markets signal further potential downside, as traders added put options for the coming expiration periods. BTC options open interest peaked in October, and started re-accumulating in November after the monthly expiration of $17B in total notional value. 

Traders are paying premiums for put options around the $100,000 mark. The market shows few signs of buying the dip and a shift to protective trading. Deribit once again remained the top market for options hedging. 

Derivative traders also remained cautious, with BTC open interest at below $33B. A series of daily long liquidations erases newly accumulated liquidity.

BTC options trading reached a peak in October

After each monthly expiry event in 2025, BTC options interest grew to a higher baseline. The market doubled as a whole, as both Deribit and IBIT became key options settlement hubs. 

In October, BTC total options volumes reached a peak of $202B, a record for the past 12 months. Elevated volumes at a higher baseline continued the trend in early November.

According to Glassnode’s analysis, BTC options increased their volumes since the $107,000 price range, and activity remained elevated. The increased trading activity reflects a reshuffling of existing positions, as well as hedging from new traders. 

Traders bet on continued downside with put options

Put options still dominate, signaling a loss of confidence in a recovery. In the past few weeks, traders quickly switched to call options with a bullish outlook. After the recent corrections, put options remain the key strategy. 

Put options dominate all the way to $111,000 per BTC, suggesting the market may be awaiting a more durable recovery. The biggest accumulation of put options is at $95,000 per BTC, setting expectations for another price dip. 

Placing put options is also a short-term strategy, heavily skewed to the nearest month. Longer-term options dates show puts remain a major strategy, but traders are more optimistic for the coming months. 

The cautious approach became even more important after October 10, as traders did not believe in a fast recovery. The ongoing price weakness pushed put options even lower, while previously most of the positions were between $100K and $107K per BTC. 

During the weekly expiry event, $5B in positions expired, with puts dominating calls. According to Deribit’s analysis, traders are hedging heavily, but giving no signs of panic. Call options accelerate above the $120K level, up to $125K. 

BTC still trades with extremely fearful sentiment, as the index dipped again to 24 points. BTC hovered around $100,676 following the weekly options expiry event.

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