Bitcoin ETF holders and treasury firms stack protection against price crash below $60,000, Deribit says

As Bitcoin faces volatility, ETF holders and treasury firms are buying put options to protect against potential price drops below $60,000, reveals Deribit.

As Bitcoin struggles to maintain its footing in a choppy market, a notable trend is emerging among ETF holders and treasury firms. These investors are taking proactive steps to guard against potential pitfalls, particularly a price fall below the crucial $60,000 mark. Why Are ETF Holders Buying Protection? Recent insights from Deribit reveal that large holders of Bitcoin ETFs and corporate treasuries are aggressively purchasing six- and twelve-month put options at $60,000 or below. This behavior signals cautiousness in the market as these groups seek to insulate their portfolios against significant price drops. What Do the Numbers Tell Us? The open interest in $60,000 Bitcoin puts has skyrocketed to approximately $1.5 billion, marking the highest level across all strikes and expirations on Deribit. This exchange accounts for nearly 80% of global crypto options activity, highlighting the growing interest among market participants in hedging strategies. "ETF holders and corporate treasuries are buying 6-month and 1-year puts at $60k or below, as portfolio insurance," stated Jean-David Péquignot, chief commercial officer of Deribit. This option acts like insurance, allowing buyers to sell Bitcoin for $60,000, regardless of how low the market dips. What Are the Implications of This Hedging Trend? The surge in demand for $60,000 puts indicates rising fears that any recent price rebounds could be short-lived. Currently, Bitcoin trades near **$67,500**, after climbing nearly **5%** since Wednesday, but the options market reflects a cautious sentiment. Puts are trading at a significant premium compared to calls, suggesting that smart money is prioritizing downside protection. What Could Spark Increased Volatility? According to Péquignot, we might see increased volatility if Bitcoin’s price dips below **$63,000**. Dealers and market makers, who play a crucial role in maintaining market liquidity, are reportedly "short gamma" at $60,000 or lower. This could lead to a scenario