On Thursday, Bitcoin futures fell to $58,995, marking a 52 percent decline from last year's peak. This drop has raised concerns among traders, particularly as Bitcoin has struggled to maintain the $60,000 level throughout the year. The trading activity in the iShares Bitcoin Trust ETF (IBIT) reflects this sentiment, with nearly 1.1 million options traded, nearly double the average volume.
Notably, put options, which allow traders to bet on price declines, outnumbered call options significantly, with 275,000 puts compared to just under 129,000 calls. The premium traded in IBIT was $187 million, with $144 million in puts, indicating a strong bearish sentiment.
The most actively traded contract was a put option with a strike price of 32.5, which requires Bitcoin to drop another 4.5% to be profitable. Current market expectations suggest a 48% chance that IBIT will fall below $30.5 by the end of next month, while the likelihood of a 10% rally is slightly higher at 55%.
This trend of increased put buying and overall bearish sentiment could signal further challenges for Bitcoin and the broader cryptocurrency market