Recent data from the Deribit options exchange shows that many investors are seeking protection against potential losses in Bitcoin, particularly ahead of Donald Trump’s anticipated announcement about new global tariffs. Open interest for put options with a strike price of $80,000, expiring on April 4, indicates a significant buyer sentiment towards these contracts. This reflects concerns over Bitcoin’s recent price drop of over 20% from its January high. Additionally, traders are increasingly focused on safe-haven assets like gold, which recently reached record prices due to Market uncertainties. As global markets continue to react to Trump’s actions, stock prices are also declining, raising fears of a recession.
Deribit Options Exchange Data Highlights Growing Concern in Crypto Market
Recent data from Deribit, a leading options exchange, has revealed an increase in interest surrounding put options, particularly those with a strike price of $80,000 expiring on April 4. This date is significant, coming just two days after former President Donald Trump is expected to announce new global reciprocal tariffs.
Panic selling seems to be the driving force behind the surge in put option purchases, as investors seek downside protection amidst growing economic uncertainty. Caroline Mauron, co-founder of Orbit Markets, noted that the risk-reversal for the April 4 expiry is notably elevated, which reflects a bearish sentiment in the Market. A risk reversal strategy involves buying a call option while simultaneously selling a put option, aiming to limit potential losses.
The surge in put options is evident, with a put-call ratio of 1.4 registered for the April 4 expiry on Deribit. This suggests that more traders are hedging against potential price declines. Bitcoin, which soared to $109,241 in January due to Trump’s former trade success, has since dropped over 20%. The drop coincides with concerns surrounding Trump’s impending tariffs and their impact on Market conditions.
Although Bitcoin experienced a brief rally last year following SEC ETF approvals, the current climate shows striking similarities to last year’s corrections. As uncertainty grows, gold has also witnessed a price surge, exceeding $3,100 per ounce, marking several new all-time highs. This reflects increased demand for safe-haven assets among investors.
In response to Trump’s anticipated tariff announcements, global markets have faced a fourth consecutive day of declines, as investors remain cautious about possible economic repercussions. Bloomberg Economics predicts that the GDP may suffer due to the latest policies, causing widespread fear among asset managers about the broader economic climate.
Overall, as the markets brace for Trump’s tariff announcements, both options trading activity and gold prices are reacting to the heightened concerns about economic stability. Investors are advised to stay vigilant as these developments unfold.
Tags: Deribit, Bitcoin, options trading, Trump tariffs, Market volatility, put options, gold prices
What are Options Point bets on Bitcoin?
Options Point bets are a way for people to place wagers on the future price of Bitcoin. In this case, they are speculating that Bitcoin’s price will stay below $80,000 at a certain time. If the price does stay below that level, the bet can pay out.
How does betting with Options Point work?
When you use Options Point, you choose a price for Bitcoin and a time frame. If the price of Bitcoin remains under your chosen price by that time, you can win your bet. If it goes over, you lose.
Why bet on Bitcoin under $80,000?
Betting on Bitcoin under $80,000 can be appealing for those who believe the price will not rise above that level soon. It is a way to potentially profit if you think Bitcoin’s value will drop or stabilize.
What are the risks of Options Point bets?
Like any betting or trading activity, there are risks. If you place a bet and Bitcoin goes above $80,000, you could lose your wager. It is important to understand the Market and only bet what you can afford to lose.
Can anyone participate in Options Point betting?
Yes, generally anyone can participate, but you may need an account with a betting platform that offers Options Point. Always check the rules and regulations in your area related to betting on cryptocurrencies.
