Options Show Bitcoin Traders Are Preparing for a Deeper Slump
- The open interest for puts has jumped over the last 24 hours
- Bitcoin ETFs have seen four straight days of outflows
Options suggest that traders are bracing for an extended decline in Bitcoin with demand for US exchange-traded funds holding the cryptocurrency beginning to wane.
Bitcoin put options expiring on March 29 exceeded call options in volume in the past 24 hours. That has nudged the put-to-call ratio, which is a key indicator of market sentiment for the underlying asset, higher, signaling a bearish outlook in the near term, according to data from crypto options exchange Deribit. The strike prices of puts are clustered around $50,000 and $45,000 on the platform. Bitcoin traded at around $63,500 on Friday.