BlockBeats News, March 12th, Coindesk analyst Omkar Godbole stated that Bloomberg has reiterated its prediction: Bitcoin could drop to $10,000 — a price level unseen since mid-2020. Industry observers, however, consider this prediction too absurd. Yet, on the largest crypto options trading platform, Deribit, around $800 million in open interest is focused on put options at $20,000, betting that the price will fall below this level. This is the platform’s fourth most popular bearish bet, indicating that some traders are preparing for a possible plunge. However, Deribit stated that not all positions are direct bets on a price plummet.
Deribit’s Global Head of Retail Sales, Sidrah Fariq, stated: “Most positions are more like selling put options rather than directional long hedging. Traders often sell put options far out of the money because the probability of hitting those levels is very low.”
Meanwhile, Bitcoin has shown remarkable resilience, hovering around $70,000 despite early trading of benchmark oil prices approaching $100 driven by an oil price rebound and market volatility. Ethereum, XRP, and SOL have also remained strong, while HYPE tokens surged approximately 10% in 24 hours. Analysts suggest that excessive leverage is being cleared out of the Bitcoin market, paving the way for a price uptrend.
sFOX’s VP of Sales, Diana Pires, stated in an email: “From a market structure perspective, this consolidation could be constructive as reducing leveraged positions often lays a more stable foundation for the next wave once clearer macro catalysts emerge.”
