Bitcoin Put Option Trade with $1M Premium Reflects Worries About Declining BTC Price

Key Points to Know:

• A notable bitcoin options trade on Deribit indicates bearish sentiment, with a trader spending over $1 million on $70,000 put options set to expire on April 25.

• The market is seeing heightened demand for BTC puts, signaling investor concern over potential economic consequences from expected U.S. tariff announcements.

As the first quarter ended on Monday, a large bitcoin (BTC) options trade on Deribit revealed bearish sentiment from the trader involved.

The block trade involved more than $1 million in premiums for 1,180 contracts of the $70,000 put option expiring on April 25, based on data from Amberdata.

A put option grants the buyer the right, but not the obligation, to sell the underlying asset at a specified price at a future date. In this case, the put buyer is bearish on the market, expecting the price to fall below $70,000 from the current $84,000.

A block trade is a sizable, privately negotiated transaction conducted outside the public market, typically by institutional investors, to prevent impacting the current market price.

Other notable trades included a put ratio spread, where the trader held long positions in the $75,000 put and double short positions in the $70,000 put. Another trade involved a risk reversal, with 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.

BTC's block options trades. (Amberdata/Deribit)

The bearish trend in the $70,000 put follows last week’s purchases of put options in the $78,000 to $85,000 range, set to expire on April 4, as well as rising demand for the $76,000 put option expiring on April 25.

In general, BTC puts are commanding higher prices than calls, signaling a negative sentiment for the market through the May-end expiry, as indicated by the negative risk reversal values.

BTC risk reversals. (Amberdata)

The preference for puts providing downside protection likely reflects investor concerns about President Donald Trump's anticipated announcement of reciprocal tariffs on Wednesday. A strong response could negatively impact risk assets, including cryptocurrencies.