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Traders turn to $60,000 bitcoin put as August outlook turns bearish

On Deribit, the $60,000 BTC put protecting against a dip now leads with $1.17 billion in notional open interest.

Reported · Written up by our desk · Market Structure

CoinDesk reports that as July ends, traders are shifting their bitcoin options positioning toward downside hedges for August. The $60,000 BTC put option, designed to protect against a drop, has become the most popular bet on Deribit, with notional open interest of $1.17 billion.

In contrast, CoinDesk says bullish call positioning had dominated earlier. Before Wednesday’s Fed meeting, call options at the $70,000 and $72,000 strikes each had about $2.5 billion in notional open interest, reflecting heavy call buying tied to expectations for a rally following the U.S. central bank’s decision.

CoinDesk adds that the Fed outcome did not spur the anticipated move, which likely contributed to the unwinding of those higher strike calls. At the Friday 08:00 UTC expiry, settled BTC and ether (ETH) options worth $10 billion, and open interest on the $70,000 and $72,000 calls has since fallen to $943 million and $888 million, respectively.

CoinDesk also points to seasonality, noting that since 2013 July has posted a median return of 8.6%, while August has shown a median return of -7.5%. The data cited shows bitcoin up 8.9% so far in July, a gain that has not yet translated into a positive typical setup for the month ahead.

Latest closeBitcoin $62,929.67 ▼2.8%|Ethereum $1,861.61 ▼2.9%

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