Bitcoin Options Show Traders Are Hedging Against Drop Back Below $80,000

Bitcoin fell as much as 4.2% to $83,637 on Friday, erasing much of the recovery seen at the start of the week. It briefly dipped below $80,000 on March 13. Other smaller, less liquid tokens were hit harder on Friday. Ether, XRP and Solana’s SOL were all down about 7%.
The risk-reversal, or the difference between 25-delta calls and puts, is at its most expensive for the April 4 expiry, further signaling bearish sentiment, according to Caroline Mauron, co-founder of Orbit Markets. A risk reversal is a strategy where you buy a call option and simultaneously sell a put option with the same expiration date to limit downside risk.
The put-call ratio for the April 4 expiry on Deribit stands at 1.4, indicating a strong preference for put options, which provide protection against price declines. Other markets such as gold also highlight the growing concern.