SKN | Bitcoin Options Signal Rising Bearish Bets as $66K Level Comes Under Pressure

Key Points:

• Options markets imply a 53% chance Bitcoin stays below $66K.
• Bearish sentiment grows as macro and political uncertainty intensifies.
• Options data shows strong demand for downside protection.

Options Market Turns Bearish

Bitcoin traders are increasingly positioning for downside, with options data suggesting a 53% probability that prices remain below $66,000 by April 24.

The shift follows a sharp drop in BTC price, which fell from above $71,000 to near $65,500, triggering significant liquidations and wiping out bullish positions.

Massive Liquidations and Expiry Shock

The recent decline led to more than $200 million in leveraged long liquidations, while a major monthly options expiry rendered most bullish call options worthless.

With roughly $18.6 billion in contracts expiring, the outcome favored bearish and neutral strategies, reinforcing the cautious sentiment among traders.

Macro Pressures Weigh on Crypto

Broader economic factors are adding to the pressure. Rising oil prices, climbing bond yields and geopolitical tensions are pushing investors toward safer assets.

The surge in crude oil and expectations of increased government spending have fueled inflation concerns, which in turn reduce appetite for risk assets like Bitcoin.

Political Uncertainty Adds to Doubts

Investor confidence has also been shaken by uncertainty around U.S. crypto policy. The lack of progress on a proposed strategic Bitcoin reserve and the departure of key policy figures have raised doubts about near-term institutional support.

These developments have contributed to a more defensive stance among large traders and institutional participants.

Options Metrics Confirm Fear

Market indicators further highlight the bearish shift. The options delta skew—a measure of demand for downside protection—has risen sharply, signaling that traders are paying a premium for put options.

This reflects growing concern that Bitcoin may struggle to hold key support levels in the near term.

Sentiment Could Shift Quickly

Despite the bearish outlook, options markets are highly reactive to news and can shift rapidly.

Any easing in geopolitical tensions or positive policy developments could reverse sentiment and trigger a rebound. For now, however, traders remain cautious, with downside risks dominating short-term expectations.