A significant bitcoin (BTC) options transaction was executed on Deribit as the first quarter concluded on Monday, indicating a bearish outlook from the trader involved in the deal.
This block trade involved a premium exceeding $1 million for 1,180 contracts of the $70,000 put option set to expire on April 25, based on data compiled by Amberdata.
A put option provides the buyer the right, although not the obligation, to sell the underlying asset at a set price at a future date. This suggests that the put purchaser is bearish on the market, in this instance, predicting a decline in price to under $70,000 from the current rate of $84,000.
A block trade refers to a substantial, privately negotiated transaction carried out outside the public market, generally by institutional investors, to prevent influencing the prevailing market price.
Other noteworthy transactions included a put ratio spread, which comprised long positions in the $75,000 put and double short positions in the $70,000 put; and a risk reversal involving 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.
The bearish trend in the $70,000 put options comes after purchases made last week for put options expiring on April 4 in the $78,000 to $85,000 range, alongside a surge in interest for the $76,000 put option that is also set to expire on April 25.
Overall, BTC puts are experiencing higher premiums compared to calls, signaling a bearish sentiment extending to the May-end expiration, which is reflected in the negative values of risk reversals.
The inclination towards puts, providing downside protection, likely indicates investor concerns regarding President Donald Trump’s anticipated announcement of reciprocal tariffs on Wednesday. Such a decisive action could negatively impact risk assets, including cryptocurrencies.
