Bitcoin Options Traders Step Up Downside Hedges as Uncertainty Lingers

Bitcoin's recent rebound has yet to dispel market concerns. Anchorage Digital said options traders are buying puts to hedge against a decline in bitcoin. The rising cost of those hedges suggests investors remain wary about whether the rebound can continue, making derivatives positioning an important gauge of market sentiment.

Anchorage Digital's latest research found a pronounced put skew in both the Deribit options market and options tied to BlackRock's spot bitcoin ETF, the iShares Bitcoin Trust (IBIT), as investors paid higher premiums for downside protection. The data did not specify the report date, bitcoin's price or the amount being hedged, but the signal suggests traders are not yet fully buying into the recent rebound.