Bitcoin Put Hedging Cost Surge
Fear, uncertainty, and doubt surrounding Bitcoin are leading to extremely high costs for hedging with puts on related stocks.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"The overwhelming presence of put volume across multiple lower strikes indicates that a notable portion of options flow is betting on, or hedging against, bitcoin failing to sustain its current levels."
"Traders continue to look for protection in case prices drop. In options markets on Deribit, Bitcoin put options are heavily concentrated around the $60,000 level."
"Derive.xyz also pointed to a sizeable concentration of bitcoin 'puts,' about 13,800 contracts, conferring the right to sell bitcoin at a strike price of $85,000."
"Put options, which offer downside insurance... saw outsized demand, particularly in short-dated contracts."
"some BTC holders are hedging their inherently bullish outlook by buying a Polymarket wager that the cryptocurrency won't hit the much-touted $100,000 before the end of 2024."
"And so, bitcoin cannot be used as a hedging instrument."
"Due in part to the fear, uncertainty, and doubt surrounding Bitcoin now, both MicroStrategy and Cleanspark are extremely expensive to hedge with puts."