2024

Bitcoin

Block

Spot

<p class="is-style-lead">The volume of Bitcoin put options traded in block trades has surged to over $500 million.</p>
<p>Block trades are large transactions typically made outside the open market to avoid impacting the market price directly. A put option gives the holder the right, but not the obligation, to sell an asset at a specified price (strike price) within a certain period.</p>
<p>According to <a href="https://twitter.com/GreeksLive/status/1763563156876734861?t=gcnBIeCTMRh_bz49bNbynQ&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">Greeks.live</a>, the trading activity was primarily focused on two strategies. The first was a bear spread strategy, typically used when an investor expects a decline in the market but wants to limit potential losses.</p>
<p>In this case, the bear spread involves buying put options at a higher strike price of $55,000 and selling put options at a lower strike price of $50,000, both with the same expiration date.&nbsp;</p>
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   <p lang="en" dir="ltr">BTC Block put options volume skyrocketed today, with a notional value of over $500 million.<br>Two types of trades dominated —— one was a bear spread consisting of 55,000Put/50,000Put, and the other was orders below $45,000 to liquidate put option positions.<br>These Block trades… <a href="https://t.co/PwuvRn7vMy" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/PwuvRn7vMy</a></p>— Greeks.live (@GreeksLive) <a href="https://twitter.com/GreeksLive/status/1763563156876734861?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 1, 2024</a>
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<p>You might also like: <a href="https://crypto.news/binance-nigeria-fine-manipulation/" rel="noopener noreferrer nofollow"> Nigeria fines Binance $10b in forex-rate manipulation probe </a></p>
<p>The second strategy involved investors placing orders to close the put option positions if the price of <a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> fell below $45,000, indicating a protective measure to limit losses in a declining market.</p>
<p>The two strategies indicate spot whales’ increasing preference for protective puts, adjusting their positions in anticipation of market movements. Spot whales refer to investors holding large amounts of spot Bitcoin and are influential in the market. In this instance, the spot whales are purchasing put options as a hedge against a potential drop in the <a href="https://crypto.news/xrp-ripple-trading-bitcoin/" rel="noopener noreferrer nofollow">Bitcoin price</a>, protecting their investments from significant losses.</p>
<p>The trading strategies also suggest that Bitcoin whales are aware of a potential correction that might occur despite the bullish sentiment. Earlier this week, <a href="https://crypto.news/bitcoin-price-2024-matrixport/" rel="noopener noreferrer nofollow">Matrixport</a> co-founder Daniel Yan predicted that a 15% correction might be expected by the end of April.&nbsp;</p>
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   <p lang="en" dir="ltr">Euphoria: the sentiment of the market has come to a level where I think we should be cautious – may be a good idea to revisit my pinned tweet on the size of potential corrections. I think we should see another healthy ~15% correction by end-April.</p>— Daniel Yan (@_D_Y_A_N) <a href="https://twitter.com/_D_Y_A_N/status/1762822660155740219?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 28, 2024</a>
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<p>On the other side of the spectrum, the futures market today has seen options traders increasingly <a href="https://www.bloomberg.com/news/articles/2024-03-01/bitcoin-resumes-rise-with-options-traders-targeting-record-high?utm_source=telegram&amp;utm_content=crypto&amp;utm_medium=social" target="_blank" rel="noopener noreferrer nofollow">betting</a> that Bitcoin will reach its previous all-time high very soon. Investors and analysts are cautioned not to analyze these options trades in isolation but to consider them part of a broader investment strategy that includes spot holdings.</p>
<p>Read more: <a href="https://crypto.news/xrp-ripple-trading-bitcoin/" rel="noopener noreferrer nofollow"> XRP traders raise leverage 120% as investors look beyond Bitcoin </a></p>

Bitcoin options surge to $500m as whales apply cautious strategies

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