A significant bitcoin (BTC) options trade was executed on Deribit as the first quarter came to an end on Monday, indicating bearish sentiment from the trader responsible for the transaction.
This block trade involved a premium of over $1 million for 1,180 contracts of the $70,000 put option expiring on April 25, as reported by data from Amberdata.
A put option provides the buyer with the right, but not the obligation, to sell the underlying asset at a predetermined price at a later date. By purchasing a put option, the trader is essentially bearish on the market, anticipating a drop in price below $70,000 from the current level of $84,000.
Block trades are large transactions negotiated privately outside the public market, typically conducted by institutions to prevent impacting the prevailing market rate.
Other notable trades included a put ratio spread, with long positions in the $75,000 strike put and double short positions in the $70,000 put; and a risk reversal, which involved a long position in the $90,000 call and a short position in the $70,000 put, as highlighted by Pelion Capital founder Tony Stewart in a tweet.
BTC’s block options trades. (Amberdata/Deribit)
The purchase of $70,000 put options follows previous acquisitions of put options expiring on April 4 in the $78,000 to $85,000 range last week, along with increased interest in the $76,000 put option expiring on April 25.
Overall, BTC puts are trading at a premium compared to calls, indicating a bearish sentiment leading up to the end of May, as shown by the negative values in risk reversals.
BTC risk reversals. (Amberdata/CoinDesk)
The preference for puts offering downside protection likely reflects investor concerns ahead of President Donald Trump’s anticipated announcement of reciprocal tariffs on Wednesday. A significant move could impact risk assets, including cryptocurrencies.
