How Deep Are Bitcoin Traders Hedging After Recent Price Dip Below $100K?

Why It Matters

The deepening hedge positions reveal bearish sentiment that could amplify price pressure and trigger a feedback loop of ETF outflows and spot declines, affecting both crypto investors and broader market liquidity.

Summary

Bitcoin slipped below $100,000, marking an 18% decline from its recent $126,000 peak, as macro‑driven weakness curbed spot ETF inflows. On Deribit, the world’s largest crypto options venue, open interest in $80,000 puts topped $1 billion and $90,000 puts neared $1.9 billion, part of a broader $40 billion of BTC options OI concentrated in near‑term strikes. The surge in low‑strike puts signals traders are hedging against a further slide toward $80,000, while higher‑strike calls remain heavily written for yield generation. The market backdrop includes consecutive $1.3 billion net outflows from U.S. spot Bitcoin ETFs and over $1 billion in long liquidations at recent lows.