Bitcoin Shows Resilience, but Traders Hedge Crash Risk With $20,000 Puts

Bitcoin remained relatively stable during turmoil in global financial markets, suggesting continued support from spot buyers and long-term holders. Options markets, however, offer a clearer view of tail risk. Even without betting on an imminent decline, traders may buy low-strike puts to protect their portfolios against an extreme crash.

Ahead of this quarter’s options expiry, Deribit data showed about $800 million in open interest for Bitcoin puts with a $20,000 strike, making it the market’s third-most-popular strike. That does not mean traders expect Bitcoin to fall to $20,000, but it highlights continued demand for protection against a steep decline even as the market shows resilience.