According to data shared with CryptoSlate, open interest in Bitcoin put options with an Aug. 29 expiry date is nearly five times higher than call options.
Investors typically buy call options when they expect the asset’s price to increase. Conversely, they buy put options when they anticipate a decline in the asset’s value.
Notably, about 50% of that Derive’s put activity is concentrated around the $95,000 strike, while another 25% is split between $80,000 and $100,000.
This suggests traders are increasingly betting on a move below the six-figure mark.
Moreover, options skew, a measure comparing the cost of puts to calls, has shifted from +2% to -2% in the past month, reflecting a growing appetite for downside protection.
This shift in sentiment aligns with probability models that place an 18% chance on BTC revisiting $100,000 before the end of the month.
Ethereum is also experiencing an increase in bearish sentiment, though to a lesser degree than Bitcoin.
Derive data shows that for the Aug. 29 expiry, put options outnumber calls by just over 10%.
The highest concentration of put activity is around the $3,200, $3,000, and $2,200 strike levels, suggesting traders are bracing for anything from mild declines to more significant drops in Ethereum’s price.
Moreover, ETH’s 30-day skew has dropped from +6% to -2%, suggesting a similar pattern of growing interest in downside protection.
Meanwhile, Ethereum’s monthly volatility remains higher, with an expected volatility of 65%, compared to Bitcoin’s 35%. This suggests Ethereum could experience a bumpier ride than Bitcoin in the weeks ahead.
