Bitcoin Options Market Signals Further Downturn as Traders Pile Up Put Options in November 2025
- Why Are Bitcoin Options Traders Bracing for More Pain?
- October’s Record Volume: A Fluke or a Trend?
- Who’s Driving the Put Option Frenzy?
- Deribit’s Dominance and the $33B Liquidity Crunch
- FAQ: Your Bitcoin Options Questions Answered
The bitcoin options market is flashing warning signs as traders aggressively accumulate put options, anticipating another price drop. With open interest rebounding post-October expiry and Deribit dominating as the go-to hedging platform, the mood is decidedly bearish. Glassnode data reveals put premiums concentrated at $95K-$100K, while weekly expiries see $5B in positions—mostly puts. Despite brief call option spikes above $120K, the market remains gripped by fear, with BTC hovering around $100,676. Here’s why smart money is betting on downside protection.
Why Are Bitcoin Options Traders Bracing for More Pain?
The derivatives market is screaming caution. Bitcoin options volumes have surged to $202B in October—a 12-month high—with November continuing the trend. Traders are paying fat premiums for puts near $100K, essentially buying insurance against a crash. "This isn’t just hedging; it’s a vote of no confidence in short-term recovery," notes a BTCC analyst. Open interest dipped post-October expiry but quickly rebuilt to $17B notional, proving bears aren’t backing down.
October’s Record Volume: A Fluke or a Trend?
October wasn’t just big—it was historic. Options activity doubled as Deribit and BTCC became key settlement hubs. But here’s the twist: November’s volumes are already tracking 30% above October’s baseline. Why? Traders are rebalancing portfolios after BTC got rejected at $107K. Glassnode shows put/call ratios skewing 2:1 for strikes below $111K, with a $95K put wall suggesting traders expect capitulation.
Who’s Driving the Put Option Frenzy?
Institutional players are leading the charge. The smart money is stacking short-term puts (30-day expiry) while keeping longer-dated calls—a classic "hope for the best, prepare for the worst" play. After October 10th’s flash crash erased $5B in longs, traders learned their lesson. Now, 70% of weekly expiries are puts, per CoinMarketCap data. Even at $125K calls, the enthusiasm feels half-hearted compared to the put volume.
Deribit’s Dominance and the $33B Liquidity Crunch
Deribit controls 80% of BTC options flow, but liquidity is drying up. Open interest sits below $33B—a 3-month low—as daily long liquidations erase recent inflows. "Market makers are widening spreads because no one wants to catch a falling knife," admits a BTCC desk trader. The fear/greed index tanking to 24 confirms the mood: pure risk-off.
FAQ: Your Bitcoin Options Questions Answered
Why are put options dominating BTC markets?
Traders expect further downside after BTC failed to hold $107K support. The $95K put wall indicates a potential 10% drop from current levels.
How significant is the $202B October options volume?
It’s a record high, surpassing 2024’s peak by 22%. This suggests institutional participation is growing despite bearish sentiment.
Should retail traders follow the put-buying trend?
This article does not constitute investment advice. However, seasoned traders often use puts for portfolio insurance—not outright speculation.
