Bitcoin traders on the decentralized platform Derive.xyz are bracing for potential market turbulence, as evidenced by a significant uptick in put options with expiries set for July 11, 2025. According to data shared by Derive, these bearish bets account for 20% of the platform’s total Bitcoin options open interest, amounting to a hefty $54 million. So, what’s the story here?
A Defensive Stance Amid Uncertainty
The sizeable concentration in put options at price strikes of $85,000, $100,000, and $106,000 has caught the attention of market watchers. Nick Forster, founder of Derive, explained to CoinDesk, “This suggests that traders are positioning for potential downside, possibly bracing for macro uncertainty or profit-taking after recent strength.” It’s a defensive play, a hedge against the unknowns lurking in the macroeconomic shadows. As explored in our recent coverage of Bitcoin Market Faces Sharp Deleveraging as Investors Exit Risk Positions, the market is experiencing a notable shift in investor sentiment.
Put options give their holders the right to sell Bitcoin at a predetermined price, essentially betting that the asset’s value will slide. An increase in such bearish contracts signals caution among traders who are keen to protect their portfolios from sudden downturns. Forster noted that a staggering 70% of the recent trading volume comprised these put options, highlighting a broad defensive posture.
Divergent Paths: DEX vs. Deribit
While Derive traders prepare for a possible downturn, activity on the centralized Deribit platform paints a contrasting picture. There, traders have been offloading their put options for July, instead snapping up call options amid Bitcoin’s recent price rally—a 7% leap that saw it bounce back from sub-$100,000 levels. This follows a pattern observed during the Bitcoin price slips under $104K into ‘triple witching’ options expiry, where market dynamics shifted rapidly.
Deribit’s insights reveal a trend of dumping lower strike puts in favor of $108,000-$115,000 call options, fueled by a calmer market environment and the imminent July 4th U.S. holiday. “We observe the dumping of no longer required $100,000 and below puts in July and buyback of $108,000-$115,000 plus calls,” the platform noted on X. This divergence underscores the fragmented sentiment across trading venues, with decentralized and centralized platforms seemingly marching to different beats.
Ethereum Enthusiasm Amidst Bitcoin Caution
Amidst Bitcoin’s cautious undertones, Ethereum traders on Derive show a more optimistic outlook. Around 30% of open interest is now tied up in $2,900 strike call options for Ether, with an additional 10% at the $3,200 strike. Forster attributes this bullish positioning to the upcoming Ethereum Community Conference (ETHCC) in Cannes, a major event known for sparking product announcements and ecosystem buzz.
“This positioning seems to be driven by anticipation of ETHCC in Cannes,” Forster added, suggesting that traders are banking on potential catalysts to ignite a run-up in Ethereum’s price. The contrast between Bitcoin’s defensive stance and Ethereum’s optimism highlights the nuanced dynamics within the crypto markets, where different narratives can unfold simultaneously.
Looking Ahead: Unresolved Questions
As we head deeper into the summer of 2025, the crypto landscape remains a kaleidoscope of possibilities. Will Bitcoin’s cautious traders be vindicated by a market dip, or will the bullish sentiment seen on Deribit prevail? And what of Ethereum’s prospects, buoyed by anticipation of the ETHCC? These are the questions that traders and analysts alike will be pondering in the weeks to come.
The coming days will be telling, as the interplay between market sentiment, macroeconomic signals, and key crypto events continues to shape the ever-evolving tapestry of this digital frontier. One thing’s for sure: the crypto markets never fail to keep things interesting.
Source
This article is based on: Bitcoin DEX Traders Position for Downside Volatility With $85K-$106K Puts, Derive Data Show
Further Reading
Deepen your understanding with these related articles:
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- Crypto Daybook Americas: Bitcoin Seen Overcoming Bearish Futures, Options Signals
- Bitcoin Demand is Drying Up, What Does This Mean? (CryptoQuant)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
