February 27 News, Deribit, a derivatives platform, revealed that as Bitcoin prices fluctuate below $70,000, ETF holders and corporate finance departments are increasingly buying 6-month and 1-year put options with strike prices of $60,000 or less to hedge against potential downside risks.
Jean-David Péquignot, Chief Commercial Officer of Deribit, said that these $60,000 put options are equivalent to “price insurance.” If Bitcoin falls below this level, buyers can still sell the asset at the agreed price, locking in a minimum return. Currently, open interest in these contracts has reached about $1.5 billion, the highest among all strike prices and maturities on the platform. Deribit accounts for nearly 80% of global crypto options trading volume.
The options structure indicates that market defensive sentiment remains. Although Bitcoin has rebounded nearly 5% since this week to around $67,500, the 30-day 25-delta risk reversal index shows that implied volatility for puts remains about 7% higher than for calls. Péquignot pointed out that investors are more willing to pay a premium for downside protection rather than chasing short-term gains.
The scale of ETF and corporate holdings adds weight to risk management. The US spot Bitcoin ETF has accumulated approximately 1.26 million BTC, about 6% of circulating supply; listed companies hold around 1.14 million BTC, about 5.7% of total supply. If prices fall below $63,000, a decline in the gamma of market makers could trigger passive hedging sales, amplifying volatility.
As Bitcoin approaches key support levels, ETF hedging strategies, corporate Bitcoin allocations, and options market volatility premiums are becoming important signals for observing risk appetite in the crypto market.
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