Bitcoin Traders Hedge Bets as BTC Slides Below $100K Amid Macro Pressures

November 6, 2025

Bitcoin (BTC) briefly fell below $100,000 this week as macroeconomic uncertainty weighed on spot ETF demand, prompting traders to increase hedging activity in the options market.

Data from Deribit, the world’s largest crypto options exchange, shows growing caution among traders. Notional open interest — the dollar value of active BTC options contracts — remains above $40 billion, with heavy concentration in November and December strikes near $110,000. At the same time, demand for $80,000 strike put options has surged, signaling anticipation of a further sell-off.

“A notable increase in put options around $80,000 suggests traders are hedging against deeper downside,” Deribit said.

Options allow traders to hedge spot and futures positions or speculate on price moves and volatility. Put options, which give the holder the right to sell BTC at a predetermined price, act as insurance against declines, while call options reflect bullish bets.

Open interest for the $80,000 put now exceeds $1 billion, while the $90,000 put stands near $1.9 billion, nearly matching the combined open interest of the popular $120,000 and $140,000 call options. Some call OI reflects overwriting, where BTC holders sell higher-strike calls to earn yield on existing holdings.

Since reaching a record high above $126,000 roughly four weeks ago, Bitcoin has dropped over 18%, pressured by macro developments — particularly hawkish remarks from Federal Reserve Chair Jerome Powell — and consecutive outflows from U.S. spot Bitcoin ETFs, totaling roughly $1.3 billion over four sessions.

“Softer spot demand collided with forced deleveraging, resulting in over $1 billion in long liquidations at the lows,” said QCP Capital in a market update.

Ecoinometrics recently warned that sustained weakness near the $100,000 mark could trigger a feedback loop: declining BTC prices prompt ETF outflows, which in turn further depress the spot market.

As of writing, BTC trades at $103,200, up 1.9% over the past 24 hours.