BTC options trading is shifting toward downside protection as Deribit open interest rose to $38B; weekly expiries of roughly $4.88B in BTC options indicate traders are buying puts to hedge short-term downside, signaling heightened market caution ahead of the monthly October expiry.
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Deribit open interest: $38B — weekly BTC expiries ~$4.88B, signaling increased put buying.
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BTC maximum pain at $117,000; ETH maximum pain at $4,050, with ETH expiries near $948M.
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Recent liquidations: ~$80M in BTC longs and ~$1,165.6M in ETH longs; Crypto Fear & Greed Index fell to 28.
BTC options trading shows growing downside hedges as Deribit open interest hits $38B; read analysis and prepare positions now – COINOTAG report. | Updated Oct 16
Published: Oct 16, 2025 | Updated: Oct 16, 2025 | Author: COINOTAG
How does BTC options trading signal downside protection?
BTC options trading data shows a marked increase in put buying and short-term hedges as Deribit open interest expands to $38B. Weekly expiries totaling approximately $4.88B in BTC options point to traders protecting positions against near-term downside while longer-dated calls still retain some demand.
How do Deribit open interest and maximum pain affect price movement around expiry?
Deribit open interest rising to $38B reflects elevated options activity and liquidity; this week saw about $4.88B of BTC options and $948M of ETH options scheduled to expire. The market’s current maximum pain levels are $117,000 for BTC and $4,050 for ETH — the former is far above spot and unlikely in the near term, while the latter sits close to current ETH prices, making small moves toward that level plausible. Short-term positioning has been defensive: roughly $1.15B flowed into put options in the last 24 hours, and large traders are using puts to hedge after mid-week profit-taking. Data points referenced include Deribit open interest figures and options expiry notional values, with on-chain and market metrics reported by market analytics services and exchange summaries (plain text references).
Put buying dominated the nearest expiries as traders sought protection after a mid-week recovery faded. This aligns with observed spot and derivatives behavior: BTC dipped to $110,758 and ETH to $3,990.93 ahead of expiry, and the Crypto Fear & Greed Index declined to 28 (from 34), indicating sentiment in the ‘fear’ zone. On-chain flows show miners moved roughly 51,000 BTC toward exchanges over the past week, and recent liquidation data recorded about $80M in BTC long liquidations and approximately $1,165.6M in ETH long liquidations as ETH flirted under $4,000.
Put options dominated in the short term, signaling bearish trading and a preparation for another downward move for BTC. | Source: CoinGlass.Why are traders shifting to puts while longer-term calls persist?
Near-term uncertainty and the proximity of large weekly expiries incentivize protective strategies. Traders are using puts to limit downside exposure during periods of heightened volatility, while institutional and bullish investors still allocate to longer-dated calls to retain upside exposure without immediate delta risk. The observational mix — short-term put dominance and sustained long-term call interest — reflects layered risk management rather than a unanimous directional bet.
Frequently Asked Questions
How will the weekly BTC options expiry on Deribit affect spot Bitcoin this week?
Weekly expiries can compress implied volatility and create short-term directional pressure near key strike clusters. With ~$4.88B in BTC options expiring, spot price may experience increased rangebound trading and localized squeezes, but broad directional moves will depend on macroflows and on-chain selling, not options expiry alone.
Will Bitcoin drop after the options expiry?
Not necessarily. Options expiry can amplify price moves if a large imbalance exists at specific strikes, but most expiries settle without forcing extended trends. Current protective put activity signals caution, which may translate into short-term downside pressure, yet a sustained drop requires continued selling pressure across spot and derivatives markets.
Key Takeaways
- Elevated hedging activity: Traders increased put buying as Deribit open interest rose to $38B, indicating short-term downside protection.
- Expiry concentrations: Weekly BTC expiries of about $4.88B and ETH expiries near $948M can influence intraday ranges and volatility ahead of settlement.
- Actionable insight: Monitor open interest, near-term put-call flow, and on-chain outflows (miners and whale transfers) to gauge whether hedging converts to sustained selling or simply risk management.
Conclusion
In summary, BTC options trading shows a pronounced tilt toward downside protection as Deribit open interest climbed to $38B and weekly expiries approach $4.88B. Traders are favoring short-term put hedges while longer-dated calls remain present, creating a cautious but non-uniform market stance. Monitor options flows, liquidation data, and on-chain transfers for actionable signals; COINOTAG will continue to update this report as new data emerges.
