economy
Bitcoin is having a tough year. Traders are betting it's going to get worse
Options traders are treating this break like it could be the tip of an iceberg.
TL;DR
- Bitcoin futures fell to their lowest price since October 2024, a decline of approximately 52% from its peak.
- Options traders are showing a strong bearish bias, with put volume significantly increasing for Bitcoin-related ETFs like the iShares Bitcoin Trust (IBIT).
- A substantial portion of the premium traded in IBIT options was in puts, and most of the most-traded contracts were puts.
- Market makers expect a little over a 3% move per day in IBIT, and there's a nearly 50% chance of it falling another 10% by the end of July.
- Alexander Blume noted that Bitcoin has struggled for attention amidst strong AI stock performance, and market volatility is raising concerns.