Bitcoin (BTC) is holding firm above $110,000. However, in the last 24 hours, institutional traders have sounded the alarm. A massive volume of Bitcoin bearish bets worth $1.15 billion has flooded the market. Operators are seeking protection against a potential drop to $104,000. The derivatives analytics firm Greeks was the first to report this defensive activity.
The hard data is clear. These purchases of put options represent 28% of the total market transactions. This is an unusually high figure. The trades are concentrated in short-term, shallow out-of-the-money contracts, with weekly and monthly expirations. The $104,000 to $108,000 range is the densest zone for these bets.
Greeks.live noted that market sentiment has turned deeply negative. The panic is comparable to the crash on October 11th, which led to $19 billion in liquidations. This indicates that large players, including market makers, fear an imminent drop.
This defensive positioning occurs at a time of apparent strength. Bitcoin is trading comfortably above the $110,000 psychological support. Despite this surface calm, bearish hedging is intensifying. According to data from Coinalyze, the total open interest in BTC derivatives stands at $33 billion, though it has decreased by 1.67% in the last 24 hours.
Are Whales Anticipating a Market Downturn?
The bearish sentiment is not limited to the options market. Whale (large holders) activity reinforces this caution. Data from the Lookonchain platform shows one trader opening a short position of 3,440 BTC. This trade is valued at $392 million. This trader already has $5.7 million in unrealized gains.
Furthermore, two other large traders accumulated short positions worth nearly $180 million across BTC, ETH, SOL, and DOGE. Speculation is growing on social media about an alleged whale identified as a “Trump insider”. This individual reportedly opened another $120 million to $127 million short. These combined actions increase selling pressure.
Technical analysis also suggests caution. Analyst Ali Martinez highlighted a bearish divergence on the weekly RSI. Bitcoin’s price is making higher highs, but the momentum is registering lower highs. This often precedes major corrections. Meanwhile, analyst Ted Pillows suggests Bitcoin’s 4-year cycle is over. The market now depends on liquidity from the Federal Reserve.
The $104,000 level is the critical test. It represents a 7.3% drop from current levels. If it breaks, the correction could deepen. If the price holds, these Bitcoin bearish bets will expire worthless. The digital economy is closely watching this showdown between the bullish trend and the massive hedges.
