Crypto Traders Brace for U.S. Payrolls Jolt With Defensive Bets

Bitcoin Traders Turn Defensive Ahead of U.S. Payrolls Data

Bitcoin markets are bracing for Friday’s U.S. nonfarm payrolls (NFP) report, with traders piling into cheap downside protection on the Chicago Mercantile Exchange (CME). Far out-of-the-money put options—often used as low-cost hedges—have seen strong demand as investors prepare for the risk of a stronger-than-expected jobs print.

Forecasts call for 110,000 jobs added in August versus 73,000 in July, with unemployment holding at 4.2% and wages climbing 0.3%, according to FactSet. Despite those projections, recent data suggest cooling conditions: job openings slipped to 7.2 million in July, quits remain subdued, and ADP private payrolls slowed sharply to 54,000 from 104,000. Those signals support expectations for Federal Reserve rate cuts—a generally bullish backdrop for crypto.

Still, hedging flows highlight caution. “We’ve seen consistent appetite for leveraged downside exposure through 5-delta OTM puts across maturities,” said Gabe Selby, head of research at CF Benchmarks. “The positioning reflects concern over an upside surprise that could shift Fed policy focus back toward inflation.”

Options data from Deribit echo the caution, with short-term puts trading at a premium to calls.

Bitcoin was recently at $109,950, down 2% on the day, with resistance holding around $112,000.