Bitcoin traders are increasingly hedging against a potential downturn, a sign of growing caution as broader financial markets retreat ahead of key U.S. economic data.
The options market—where investors buy contracts to bet on or protect against future price moves—shows traders are positioning defensively.
According to Nick Forster, founder of onchain derivatives platform Derive.xyz, demand for protective contracts has risen, particularly for so-called put options, which give holders the right to sell Bitcoin at a set price.
“Derivatives are positioned defensively right now, with the immediate 25-delta call/put skews hitting 2025 lows,” Forster said.
In simpler terms, traders are paying more for downside protection than they have at any point this year, with many focusing on contracts that would allow them to sell Bitcoin in the $75,000 to $70,000 range through the end of March.
At the same time, demand for call options, which…
