Bitcoin Options Market Signals Strategic Pivot Amid Volatility

The cryptocurrency derivatives landscape is witnessing a notable shift in trader positioning, as recent data from Deribit reveals a significant move toward bearish strategies in bitcoin options. The $80,000 put contract has now emerged as the instrument with the largest open interest on the platform, amassing positions exceeding $2 billion in value. This development marks a decisive change from the previous week's market focus, where the $85,000 put held the spotlight with $1.97 billion in open interest before ceding its dominant position. Concurrently, bullish sentiment appears to be receding, evidenced by the declining open interest in the $140,000 call option, which has dwindled to $1.56 billion. This pivot in the options market reflects a more cautious or strategically defensive posture among institutional and sophisticated traders, potentially indicating expectations of near-term resistance or a consolidation phase below the $80,000 threshold. The concentration of capital in these specific strike prices provides a clear snapshot of market sentiment and key levels that participants are watching closely. While the surge in put open interest suggests hedging activity or outright bearish bets, it is crucial to interpret this within the broader context of a maturing derivatives market where such instruments are used for complex portfolio management, not solely for directional speculation. This activity underscores the growing depth and sophistication of cryptocurrency financial products, even as it highlights the ongoing volatility and divergent views on Bitcoin's price trajectory. As of early 2026, these market dynamics offer valuable insight into the risk perceptions and strategic positioning of major market players.

Bearish Bets Dominate Bitcoin Options as $80K Put Positions Surge

The Bitcoin options market has pivoted sharply toward bearish strategies, with the $80,000 put contract now holding the largest open interest on Deribit—surpassing $2 billion in positions. This marks a decisive shift from last week’s focus on the $85,000 put, which saw $1.97 billion in open interest before losing ground. Meanwhile, bullish sentiment wanes as the $140,000 call option’s open interest dwindled to $1.56 billion.

Deribit’s data reveals a broader trend: traders are abandoning Leveraged calls in favor of puts, signaling heightened skepticism about Bitcoin’s near-term upside. The concentration of bets below $80,000 underscores growing expectations of further downside pressure, even as overall trading volume climbs.

JPMorgan Faces Crypto-Led Boycott Amid MSCI Warning & Epstein Ties

JPMorgan Chase is under fire from Bitcoin advocates and high-profile investors after warning that MSCI may exclude crypto-heavy companies from its benchmarks. The bank's research note estimated potential outflows of up to $2.8 billion, with total withdrawals possibly reaching $8.8 billion if other index providers follow suit. Strategy's stock (MSTR) plummeted below $200, hitting $170 by Friday—its lowest level in recent memory.

Grant Cardone and prominent crypto figures have called for a boycott of JPMorgan, accusing the bank of exacerbating market instability. The backlash has also reignited scrutiny over JPMorgan's historical ties to Jeffrey Epstein, further straining relations between the crypto community and traditional financial institutions.

JP Morgan Faces Crypto Community Backlash Over MicroStrategy Market Turbulence

Market chaos erupted as MicroStrategy's MSTR shares and Bitcoin prices plummeted simultaneously, triggering accusations against JP Morgan. The investment bank stands accused of engineering the sell-off through abrupt margin requirement changes on July 7, which traders claim exacerbated volatility and forced liquidations.

Speculation intensified when Crypto Banter's Ran Neuner suggested potential delisting risks for MicroStrategy from MSCI or NASDAQ indices. This followed unconfirmed reports that MSCI may remove crypto treasury companies from global indexes by January 2026—a move that WOULD disproportionately affect Michael Saylor's Bitcoin-heavy firm.

Empery Digital's allegations paint JP Morgan as an active market participant rather than neutral analyst. The trading firm contends the bank's bearish positioning preceded the dramatic price action, creating a self-fulfilling prophecy. Saylor countered by emphasizing MicroStrategy's $500M annual software revenue and $7.7B balance sheet, attempting to decouple the company's valuation from pure Bitcoin exposure.

Bitcoin Advocates Rally Against JPMorgan as MSCI Prepares Crypto Exclusion

Index provider MSCI will begin excluding crypto treasury companies holding over 50% digital assets from major indexes starting January 2026. The MOVE threatens automatic sell-offs for firms like Strategy, whose stock has plummeted 57% over the past year.

JPMorgan analysts warn of potential $2.8 billion outflows from Strategy if removed from MSCI indices, with Ripple effects reaching $8.8 billion should other index providers follow suit. 'This is institutional bias against Bitcoin masquerading as risk management,' said Strategy founder Michael Saylor, who rebranded his firm as a 'Bitcoin-backed structured finance company.'

The Bitcoin community responded with calls to boycott JPMorgan Chase. Investor Grant Cardone pledged to withdraw $20 million from the bank, while commentator Max Keiser accused Wall Street of 'financial terrorism' against crypto assets. Market observers note the irony of JPMorgan's stance given its 15-year bull run since the financial crisis.

Bitcoin ETF Outflows Near Record $3.5B Amid Stablecoin Contraction

November's $3.55 billion in spot bitcoin ETF outflows marks the second-largest monthly withdrawal since launch, mirroring February's $3.56 billion exodus. The capital flight coincides with shrinking stablecoin supplies - USDE alone shed nearly half its circulating tokens since October.

Market mechanics rather than sentiment drove bitcoin's retreat to $84,000, according to NYDIG's Greg Cipolaro. Treasury vehicles that fueled the 2024 rally are now unwinding positions as premiums evaporated. Even strategic buys by El Salvador and institutional players failed to stem the decline.

The stablecoin supply contraction signals tightening liquidity across crypto markets. Meanwhile, ETF flows have reversed from their earlier role as primary demand drivers to becoming net sellers during this correction phase.

Bitcoin is Still Showing Sell Signals: Will it Fall Further or Reverse?

Bitcoin hovers above $86,800 amid persistent sell signals, marking an 8.7% weekly decline. Traders weigh the potential for a rebound against further downside as market sentiment remains cautious.

The cryptocurrency's current price action reflects broader uncertainty, with technical indicators suggesting continued volatility. Market participants are closely monitoring key support levels for signs of reversal or accelerated selling pressure.