According to data from Deribit, the ratio of put options to call options for Bitcoin options contracts expiring this Friday has increased to over 1, which is considered a bearish signal in the market. A ratio above 1 indicates a significantly higher number of outstanding put options compared to call options, indicating that more investors are betting or hedging against a price decline rather than an increase.
Deribit data shows that among the options expiring this Friday, the largest cluster of outstanding contracts is for put options with a strike price of $58,000. Additionally, there is a significant amount of put options for strike prices of $52,000 and $48,000.
Bitcoin options traders have increased their bets on further declines. In a report on Monday, asset management company ETC Group stated:
The report also noted that during the recent price decline, the implied volatility of Bitcoin options has increased. The implied volatility of at-the-money Bitcoin options with a one-month expiration has risen to 50.5%. The term structure of volatility has also inverted, with short-term options having significantly higher implied volatility than long-term options, reflecting the market’s heightened concern and demand for protection against near-term Bitcoin price volatility.
