Bitcoin Traders Paid ₱41.07 billion ($685 million) for Crash Insurance Last Month
Bitcoin traders are heavily betting on further downside despite a recent price stabilization. VanEck found that put options—crash insurance—cost ₱41.07 billion ($685 million) over the past 30 days, with the put/call ratio peaking at 0.84, suggesting traders expect volatility to return.
Key Takeaway
Heavy crash insurance buying near $70,000 suggests traders expect another leg down, not up.
VanEck found that traders paid ₱41.07 billion ($685 million) for Bitcoin put options in the past month, a 24% drop from the previous period but still among the highest levels seen this year.
The spending came as Bitcoin's realized volatility collapsed from 80 to 50 and the price stabilized around $70,000. The put/call ratio peaked at 0.84 and averaged 0.77, showing unusually strong demand for downside hedging relative to bullish positioning.
VanEck said this level of defensiveness has historically marked periods closer to market bottoms than tops. When options markets have been this fearful in the past, Bitcoin has tended to recover, according to the report.
Bitcoin traded at $69,891 at the time of the analysis, down nearly 1% in 24 hours but up more than 5% over the past month. The price remains nearly 45% below its all-time high set in October 2024. Long-term Bitcoin holder transfers appear to be slowing, with the ₱41.07 billion ($685 million) in premiums exceeding 77% of monthly observations since the start of 2025.
This article was written based on reporting from Decrypt.
