In a shift that contrasts recent centralized exchange trends, Bitcoin DEX traders are increasingly positioning for downside volatility, according to onchain data from decentralized options platform Derive.xyz. The surge in bearish options activity suggests market participants are preparing for potential macro uncertainty or short-term corrections following Bitcoin’s sharp recovery.
Put Options Dominate BTC Options Flow on Derive.xyz
As of June 30, more than 70% of BTC options trading volume on Derive consisted of put options — contracts that gain value if the asset’s price drops. These puts allow traders to sell Bitcoin at predetermined levels, typically as a hedge or speculative play on a price decline.
20% of all open BTC options interest on Derive is now concentrated in July 11 puts with strikes at $85,000, $100,000, and $106,000 — representing over $54 million in notional value.
This cautious positioning stands in contrast to recent sentiment on centralized platforms like Deribit, where traders have exited bearish puts and instead accumulated calls (bullish bets) in the $108,000–$115,000 range.
Market Uncertainty and Profit-Taking Likely Behind Defensive Stance
Derive founder Nick Forster stated that this spike in put volume suggests traders may be hedging recent profits or anticipating macro-driven market pressure.
“BTC traders are on the defensive,” Forster explained, noting a broader atmosphere of caution heading into the July 4 U.S. holiday weekend.
Open interest — a measure of outstanding active contracts — is closely watched as an indicator of market sentiment and capital at risk. The clustering around three key strike prices ($85K, $100K, and $106K) implies traders see potential for volatility within that zone before mid-July.
ETH Traders Stay Bullish Ahead of ETHCC
In a striking contrast, ETH traders on Derive.xyz remain bullish. Around 30% of ETH options open interest is focused on $2,900 call options, with an additional 10% at $3,200 calls.
This optimism appears linked to the upcoming Ethereum Community Conference (ETHCC) in Cannes, France, a prominent event often tied to major announcements and ecosystem developments.
“ETH options traders are clearly anticipating bullish catalysts,” said Forster.
Conclusion: Divergence Highlights Evolving Derivatives Landscape
This divergence between DEX-based traders and centralized players reflects a nuanced and maturing crypto options market. While onchain traders lean bearish on BTC in the short term, they remain optimistic on ETH’s growth narrative ahead of ETHCC.
As volatility and event-driven flows pick up this July, both Bitcoin and Ethereum derivatives markets are poised to offer key insights into trader sentiment and institutional risk appetite.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.