Bitcoin Traders Stack Bearish Positions as Downside Bets Extend Toward $52K

Bitcoin traders are rapidly positioning for further downside, with increased demand for options that would profit if the sell-off intensifies.

Market participants are aggressively buying put options that would pay out if Bitcoin slides toward the $52,000 level in the coming weeks, signaling growing expectations of a deeper correction.

Over the past 24 to 48 hours, data from Deribit, tracked by Laevitas, shows a surge in short- and near-dated put buying across expirations ranging from June 22 to July 31. Key activity included June 22 $61,500 puts (337 contracts), July 3 $60,000 puts (116 contracts) and $55,000 puts (380 contracts), July 10 $55,000 puts (540 contracts), and July 31 $52,000 puts (314 contracts).

Put options function as downside protection, giving buyers the right to sell Bitcoin at a predetermined price. If BTC falls below that level, the holder can exercise the option and benefit from the difference. On Deribit, each contract represents one BTC.

The concentration of activity in out-of-the-money puts points to a clearly bearish market bias, driven by a mix of macro and crypto-specific pressures.

A more hawkish Federal Reserve is strengthening the U.S. dollar, while Bitcoin ETFs continue to see sustained outflows. At the same time, Strategy—the largest publicly listed Bitcoin holder—is under increasing financial strain.

Its preferred stock, STRC, has fallen sharply below its $100 par value, adding pressure to its Bitcoin accumulation strategy.

Arca CIO Jeff Dorman warned that the situation is becoming increasingly fragile, noting that the company may need to either sell significant BTC holdings or risk further deterioration across its capital structure due to rising uncertainty.

At the time of writing, Bitcoin was trading near $62,400, down 0.8% since midnight UTC, after briefly touching highs near $67,000 earlier in the week.