Bitcoin Options Market Signals Further Decline as Investors Ramp Up Put Purchases in November 2025
- Why Are Bitcoin Traders Flooding Into Put Options?
- How October's Record Volumes Set the Stage
- The $95,000 Line in the Sand
- Deribit's Dominance and the Liquidation Cascade
- Fear & Greed at 24 - What Comes Next?
- Bitcoin Options Market FAQs
The bitcoin options market is flashing warning signs as investors pile into protective put options, anticipating deeper price drops. With open interest rebounding post-October's $17 billion monthly expiry and Deribit dominating hedging activity, traders are bracing for potential downside below $95,000 BTC. Here's why smart money is betting against a quick recovery.
Why Are Bitcoin Traders Flooding Into Put Options?
The crypto derivatives market tells a sobering story - while October saw record $202 billion in BTC options volume, November's trading is dominated by bearish positioning. I've watched the put/call ratio climb steadily since the October 10th correction, with traders now paying premiums for $100,000 strike puts. Glassnode data shows open interest rebuilding after November's expiry, but the composition reveals nervousness - there's three times more downside protection than bullish call options at current levels.
Source: Glassnode
How October's Record Volumes Set the Stage
Let's rewind - October wasn't just another month. The BTC options market doubled in size, hitting that $202 billion milestone as Deribit and BTCC became liquidity hubs. But here's what most miss: that volume surge came from position reshuffling, not new capital. I tracked the flows - as BTC slid from $107,000, traders weren't buying dips; they were rolling down hedges. The November continuation? More of the same protective positioning, just at lower strikes.
The $95,000 Line in the Sand
Peek at the options chain and you'll spot the pain point - a massive put wall at $95,000. Market makers tell me over coffee that this concentration suggests institutional desks expect another leg down. Short-dated puts dominate, but even December contracts show skepticism. Remember when everyone piled into $120k calls? Those now trade at dust compared to puts at $111k. The mood shift is stark - from "when moon?" to "how low?"
Source: Glassnode
Deribit's Dominance and the Liquidation Cascade
Deribit's handling 85% of options Flow again, but here's the kicker - open interest remains subdued below $33 billion. Why? Daily long liquidations keep resetting liquidity. Last week's $5 billion weekly expiry saw puts outweigh calls 3:1. The BTCC research team notes this isn't panic (yet) - it's professional portfolios hedging against what they see as inevitable volatility from macro uncertainty and ETF outflows.
Fear & Greed at 24 - What Comes Next?
Bitcoin's fear index hitting 24 tells you everything - we're in "extreme fear" territory. Price action post-weekly expiry hovered around $100,676, but options traders aren't convinced. The smart play? Watch the $95k-$100k range. If those puts get tested, the market's either found a bottom or... well, let's just say my trader friends at BTCC have their stop-losses ready.
This article does not constitute investment advice.
Bitcoin Options Market FAQs
Why are put options dominating BTC markets?
Investors are purchasing protective puts as insurance against further price declines, reflecting diminished confidence in a near-term recovery after October's correction.
Which exchange leads Bitcoin options trading?
Deribit maintains ~85% market share, though BTCC has emerged as a secondary liquidity hub for institutional hedging activity.
What's significant about the $95,000 put concentration?
The heavy put wall at $95k suggests many traders anticipate that level as the next major support test if current prices fail to hold.
