After Bitcoin retreated to around $62,000, defensive positions began to increase in the options market. Recent developments indicate that some traders are betting on a continued decline in BTC using short-term put options, with expiration dates primarily concentrated between late June and the end of July.
Short-term bearish positions increased
The report noted that BTC put options expiring in recent months have seen increased activity this month, with strike prices gradually declining, reflecting a more cautious market outlook. The positions highlighted are primarily concentrated between June 22nd and July 31st.
- Approximately 337 put options expiring on June 22, priced at $61,500 each.
- Expires on July 3rd, approximately 116 units for $60,000 each, and approximately 380 units for $55,000 each.
- Expires on July 10 and July 31, approximately 540 units for $55,000 and approximately 314 units for $52,000.
Judging from the position distribution, the market is not just hedging against short-term fluctuations; some funds are also targeting the $55,000 to $52,000 range for potential declines.
Execution price continues to decline
The report points out that since June 22, the strike price of related put options has been declining every week. This usually means that traders are willing to pay the cost for deeper downside protection, and also indicates that the market is not optimistic about the support level for the current price.
Against the backdrop of downward pressure on spot prices, an increase in put options often indicates a decline in risk appetite. For some institutions and large holders, these positions may be either directional bets or protection against exposure to the spot market.
Strategy's stock price also came under pressure.
The report also noted that Strategy, which holds a large amount of Bitcoin, has seen its stock price fall by more than 30% this year and is nearing a 52-week low. Given the high correlation between the company's asset allocation and Bitcoin prices, further declines in BTC could amplify market concerns about its valuation and holding risks.
The article also cited long-term bearish views on the company, stating that if Bitcoin falls further towards the $52,000 range, Strategy's book pressure could continue to rise.
