Bitcoin traders are increasingly positioning for further downside, with rising demand for options that would pay off if the selloff deepens.

Market participants have been aggressively buying put options that would gain value if Bitcoin drops toward the $52,000 level in the coming weeks, signaling expectations of a more extended correction.

Over the past 24 to 48 hours, Deribit data tracked by Laevitas shows a notable surge in short- and near-dated put buying across expirations from June 22 through July 31. Key activity includes June 22 $61,500 puts (337 contracts), July 3 $60,000 puts (116 contracts) and $55,000 puts (380 contracts), July 10 $55,000 puts (540 contracts), and July 31 $52,000 puts (314 contracts).

Put options provide downside protection by giving holders the right to sell Bitcoin at a predetermined price. If the market falls below that level, the option increases in value as it locks in a higher selling price. Each Deribit contract corresponds to one BTC.

The heavy concentration in out-of-the-money puts reflects a clear shift toward bearish sentiment, driven by a mix of macroeconomic pressure and crypto-specific weakness.

A more hawkish Federal Reserve has strengthened the U.S. dollar, while spot Bitcoin ETFs continue to see steady outflows. At the same time, Strategy—the largest publicly listed corporate holder of Bitcoin—is facing mounting financial strain.

Its preferred stock, STRC, has dropped below its $100 par value, adding pressure to its broader Bitcoin accumulation strategy.

Arca CIO Jeff Dorman described the situation as increasingly fragile, warning that the company may be forced to either sell significant BTC holdings or risk further deterioration across its capital structure amid rising uncertainty.

At the time of writing, Bitcoin was trading near $62,400, down about 0.8% since midnight UTC, after briefly touching highs near $67,000 earlier in the week.