$1M Bitcoin Put Option Premium Reflects Growing Anxiety Over BTC Price Drop

Bitcoin Options Market Shows Bearish Outlook with $1M Put Option Trade as April Expiry Approaches

As the first quarter came to a close on Monday, a major bitcoin (BTC) options trade on Deribit highlighted growing pessimism in the market, with a large block trade signaling concerns over a potential price decline.

The trade involved 1,180 contracts of the $70,000 put option, set to expire on April 25, and carried a premium of over $1 million, according to Amberdata. This substantial purchase reflects a bearish outlook, with the trader betting that bitcoin’s price will fall below $70,000, down from its current level of around $84,000.

Put options provide the buyer with the right, but not the obligation, to sell the underlying asset at a predetermined price. In this case, the trader is anticipating a downturn in bitcoin’s price, with the $70,000 strike price chosen as a key level of support to bet on.

Block trades, like the one executed here, are large private transactions designed to avoid influencing the market price, and are often used by institutional investors. This trade marks a clear bearish sentiment as bitcoin faces downward pressure.

Other key options strategies have also appeared in the market, including a put ratio spread involving long positions in the $75,000 strike put and short positions in the $70,000 put, along with a risk reversal strategy that includes a long $90,000 call and a short $70,000 put. These trades suggest a combination of bearish sentiment and cautious hedging.

In addition to the $70,000 put options, there has been increased demand for puts with expiration dates in early April, particularly those in the $78,000 to $85,000 range. Furthermore, a growing interest in $76,000 puts for the April 25 expiry further emphasizes the downside bias in the market.

In general, bitcoin puts are commanding higher premiums than calls, indicating that investors are increasingly concerned about a potential decline in price. The rising demand for downside protection could be tied to broader economic uncertainty, particularly with the anticipation of President Donald Trump’s upcoming tariff announcement. Such a move could weigh heavily on risk assets, including cryptocurrencies, adding further downward pressure to an already cautious market.