BTC put options with $20K strike price see third-largest capital inflow

Bitcoin put options with a $20,000 strike price have attracted the third-largest amount of capital in the options market, CoinDesk reported. Citing data from the world's largest crypto options exchange, Deribit, the report noted that these put options hold a notional value of $596 million ahead of the first-quarter expiration. While call options with strike prices of $125,000 and $75,000 have the highest notional values, the extreme $20,000 strike price is drawing significant funds among put options. This suggests an increasing number of traders are preparing for an extreme downside scenario amid escalating conflicts in the Middle East, which would require the market to fall over 70% for the options to be profitable. However, the report also suggests that a significant portion of this capital is likely part of a strategy to collect premiums or capitalize on volatility, rather than a direct hedge against a crash. This activity is often a strategic move by options investors rather than a purely bearish outlook. The put/call ratio for expiring Bitcoin options on Deribit is currently 0.63, indicating a prevalence of call options.