Bitcoin News Today: Institutional Investor Bets $5M on 7.56% Bitcoin Drop to $110K, Record Deribit Trade

A crypto investor has executed a high-stakes options trade betting that Bitcoin will fall to $110,000 by August 8, signaling a bearish outlook despite the asset’s current price hovering near $119,000. The trade, facilitated through Deribit, involved a $5 million premium paid for put options covering 5,000 Bitcoin (3,000 and 2,000 contracts in two separate transactions), translating to a notional value of approximately $600 million [1]. This marks the largest single-leg block trade in Deribit’s history, according to Griffin Sears of FalconX, which executed the transaction. The trade’s structure—a direct short position rather than a hedged spread—underscores a high-conviction, institutional-scale bet on Bitcoin’s downward trajectory [1].

The move highlights growing institutional participation in crypto derivatives, as investors increasingly use leveraged options to express directional views. Nicolas Quatravaux of Paradigm noted the trade’s significance beyond its size, emphasizing the maturation of the crypto options market in handling large-scale flows [1]. Deribit’s record open interest in crypto options further reflects this trend, though most trading activity still occurs on offshore platforms like Binance. Recent regulatory developments, including Coinbase’s acquisition of Deribit and the easing of U.S. crypto exchange rules, have also contributed to the market’s expansion [1].

The bearish wager contrasts with prevailing bullish forecasts, such as projections of Bitcoin surpassing $200,000 by year-end 2025 [3]. Analysts attribute this divergence to macroeconomic uncertainties and divergent narratives around Bitcoin’s supply dynamics and ETF adoption. While the $110,000 target aligns with technical resistance levels, a breach could trigger cascading stop-loss orders and accelerated selling, according to Cointelegraph [2]. Conversely, a rebound above $120,000 might validate bullish arguments, potentially sparking a short squeeze [2].

Market dynamics remain polarized, with open interest surging as traders brace for volatility. Bitcoin’s consolidation near $120,000 has intensified speculative activity, as investors await catalysts such as macroeconomic data, regulatory updates, or on-chain metrics [4]. The trade also underscores the role of derivatives in amplifying price swings, particularly when leveraged positions are liquidated rapidly during sharp moves.

The absence of immediate comments from Deribit highlights the opacity surrounding such large trades, though FalconX’s transparency in reporting the transaction provides a rare glimpse into institutional risk-taking. As the crypto market grapples with balancing bearish and bullish narratives, this $600 million bet serves as a barometer of risk appetite. Whether it catalyzes a sustained decline or is invalidated by a breakout depends on how macroeconomic pressures, regulatory clarity, and market psychology evolve in the coming months [1][2].

Sources:

[1] [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] [Bitcoin due 'massive short squeeze' as BTC...](https://www.google.com/finance/quote/BTC-CAD?hl=en)

[3] [Could Bitcoin Actually Hit $200000 Before 2026?] (https://www.aol.com/could-bitcoin-actually-hit-200-110000320.html)

[4] [Bitcoin Price Consolidation Tightens — Analysts Expect ...] (https://bitzuma.com/news/bitcoin-price-consolidation-tightens/)