What to know:
- The grandmasters of bitcoin-ETF holders and corporate treasuries-have taken to buying six- and 12-month put options at $60,000 or below, like a Victorian gentleman purchasing a parasol for a storm that hasn’t arrived yet.
- Deribit’s open interest in these puts now hums along at $1.5 billion, a sum so vast it could buy a small principality or, more prosaically, a very large existential crisis.
In the grand theater of finance, where every investor is both hero and fool, the bitcoin ETF holders and corporate treasuries-those paragons of long-term vision-have decided to hedge their bets against a price drop below $60,000. Deribit, the self-appointed oracle of derivatives, has whispered this tale to CoinDesk, no doubt with the solemnity of a man recounting a family tragedy.
“ETF holders and corporate treasuries,” declared Jean-David Péquignot, Deribit’s chief commercial officer, “are buying 6-month and 1-year puts at $60k or below, as portfolio insurance.” One might imagine him delivering this line with the gravitas of a Russian general addressing the Tsar, though the real drama lies in the fact that $60,000 now feels less like a price and more like a eulogy.
This put option, that most elegant of financial contrivances, allows its owner to sell bitcoin at $60,000 even if the market collapses. A noble shield against ruin, it is the equivalent of a knight’s armor in a world where the dragon is a meme coin. Yet, as Péquignot points out, the open interest in these puts has ballooned to $1.5 billion-a figure so staggering it makes one wonder if the market is preparing for an apocalypse or a particularly bad earnings call.
The surge in demand for these six-month puts, Péquignot suggests, is a harbinger of doom. “Any price bounce,” he warns, “could fizzle fast, paving the way for a sharper drop.” One cannot help but marvel at the optimism. After all, what could possibly go wrong?
What makes this hedging even more noteworthy is that these same ETF holders and corporate treasuries own a significant chunk of bitcoin. Investors have poured billions into U.S.-listed spot bitcoin ETFs and similar products worldwide, amassing 6% of the total supply. Meanwhile, publicly listed firms hold another 5.7%. Together, they form a coalition of the nervous, hoarding BTC like squirrels in a winter that never ends.
Bitcoin, for its part, has been trading in a daze below $70,000, having flirted with $60,000 earlier this month. It has since rallied to $67,500, but the options market remains unimpressed, with puts trading at a premium. “While spot price climbed,” Péquignot sighs, “the 25-delta risk reversal remained stubborn. 30-day puts still trade at a ~7% volatility premium over calls.” In other words, the market is paying extra to insure against a collapse it hopes never comes.
And if prices do drop below $63,000? Ah, here lies the rub. Market makers, those sly creatures of liquidity, are “short gamma” at $60,000 or lower. This means they may sell more as prices approach that level, rebalancing their exposure and inadvertently adding to the chaos. A self-fulfilling prophecy, if ever there was one.
In this grand ballet of fear and greed, the players are all too aware that the music may stop. Yet they dance on, hedging their bets with puts, their eyes fixed on the horizon where the dragon of uncertainty looms. One wonders, in the end, whether their insurance will be a life raft or merely a paperweight.
Read More
- USD COP PREDICTION
- Silver Rate Forecast
- Gold Rate Forecast
- USD CAD PREDICTION
- Brent Oil Forecast
- SOL PREDICTION. SOL cryptocurrency
- XRP ETF Crushes Solana – First Day Madness! 🎉🚀
- BNSOL PREDICTION. BNSOL cryptocurrency
- HYPE PREDICTION. HYPE cryptocurrency
- IP PREDICTION. IP cryptocurrency
2026-02-27 09:50