Bitcoin News Today: Crypto Investor Places $600M Bearish Bitcoin Bet with $110,000 Options Trade

A crypto investor executed a record-breaking put options trade on Bitcoin, betting the price will drop below $110,000 by August 8. The anonymous speculator paid $5 million in premium on Deribit’s exchange to purchase 5,000 Bitcoin put options at the $110,000 strike price, resulting in a notional value of approximately $600 million [1]. This transaction marks the largest USD notional single-leg block trade in Deribit’s history, according to Griffin Sears, global head of derivatives at FalconX, the broker facilitating the trade. The move reflects a high-conviction bearish stance, with the structure of the trade indicating an institutional-scale bet rather than a hedging strategy [1].

The wager underscores growing institutional appetite for crypto-native derivatives. Nicolas Quatravaux of Paradigm, a leading crypto derivatives liquidity provider, noted the trade’s significance in demonstrating the maturity of the options market. “It shows how far the crypto options market has come in terms of depth and its ability to handle institutional-scale flows,” he said [1]. This comes as open interest on Deribit recently hit a record, highlighting increased participation in derivative products [1].

Despite the bearish bet, Bitcoin’s price remained stable at $119,000 as of Thursday, consolidating within a range below $120,000. Technical indicators, however, suggest conflicting signals. A "bullish pennant" pattern observed on key charts implies potential upward momentum following a 14% rally, according to analysts [2]. Yet the accumulation of open interest—a measure of outstanding derivative contracts—points to a tug-of-war between bulls and bears [2].

The trade’s timing coincides with broader market dynamics. The cryptocurrency market has seen a surge in derivatives trading, with perpetual futures dominating global volume. Meanwhile, U.S. exchanges are expanding crypto derivative offerings as regulatory frameworks evolve post-2024. Coinbase’s pending acquisition of Deribit and the launch of crypto ETFs signal a shift toward mainstream institutional adoption [1].

Critics argue that Bitcoin’s recent rally lacks fundamental support, attributing gains to speculative flows rather than adoption-driven demand. On-chain data, however, shows sustained buying pressure from large holders, countering bearish forecasts [3]. The $110,000 target, while below current levels, aligns with debates over Bitcoin’s long-term valuation.

Macro factors will likely influence the trade’s outcome. The Federal Reserve’s next rate decision could trigger a market-wide risk-off environment or reinforce confidence in alternative assets. Traders will watch for catalysts such as regulatory updates or economic data to determine whether the bearish thesis or technical indicators prevail [2].

The bet highlights crypto’s inherent volatility and the appetite for contrarian positions. As institutional investors increasingly allocate capital to crypto derivatives, such large-scale wagers will likely become more common. The market’s ability to absorb and execute these trades reflects its evolving maturity, though risks remain tied to rapid shifts in sentiment and macroeconomic conditions [1].

Sources:

[1] [Bloomberg - Bitcoin Bear Makes High Stakes Options Wager on Drop to $110,000](https://www.bloomberg.com/news/articles/2025-07-24/bitcoin-bear-makes-high-stakes-options-wager-on-drop-to-110-000)

[2] [Bitzuma - Bitcoin Price Consolidation Tightens](https://bitzuma.com/news/bitcoin-price-consolidation-tightens/)

[3] [Cointelegraph - Bitcoin Due 'Massive Short Squeeze'](https://www.google.com/finance/quote/BTC-CAD?hl=en)