- Investors hedge market volatility with Bitcoin and Ethereum options.
- Traders buy put options for downside protection.
- Increased market anxiety around short-term risks.
Following last Friday’s wave of margin calls, crypto investors are hedging against potential declines by purchasing put options on Bitcoin and Ethereum, reflecting increased market volatility concerns.
This market shift highlights growing unease as traders prepare for continued instability, with potential impacts on Bitcoin and Ethereum’s short-term outlook.
Bitcoin and Ethereum Put Options Surge Amid Market Anxiety
Investors are actively positioning with put options to guard against potential dips. In Bitcoin markets, put options with strike prices at $115,000 and $95,000, expiring on October 31st, have been favored. Ethereum sees a similar stance, with traders focused on the $4,000 and $3,600 strikes.
The shift from buying to selling of call options around $125,000, expiring on October 17th, suggests a pessimistic short-term outlook among traders. Ethereum’s shift reflects expectations of continued market pressure, with bearish sentiment persisting at least until December.
— Sean Dawson, Head of Research, Derive.xyz
Historical Context Shows Patterns in Price Momentum Shifts
Did you know? In past market cycles, significant options expiries have repeatedly triggered notable shifts in Bitcoin’s short-term price momentum, mimicking current hedging activity seen today.
Bitcoin’s current price is approximately $114,161.61, translating into a market cap assessed at $2.28 trillion, according to CoinMarketCap. The cryptocurrency’s 24-hour trading volume is around $68.79 billion, whilst dominance hovers near 58.35%. Remarkably, Bitcoin’s value decreased by 1.05% in the past 24 hours.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 02:26 UTC on October 14, 2025. Source: CoinMarketCapMembers of the Coincu research team observe that these market adjustments could signal heightened volatility well into the year’s end, as continued pressure on options markets might fuel strategic hedging practices. Broader economic shifts could impact regulation and market structures, although many analysts predict gradual stabilization in the longer term.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/markets/crypto-put-options-volatility-risk/