[Surge in Demand for Bitcoin and Ethereum Put Options as Market Hedges Downside Risks]
Following last Friday's liquidation cascade, the options market indicates that investors are preparing for potential further declines in Bitcoin and Ethereum. Sean Dawson, Head of Research at Derive.xyz, pointed out that short-term market volatility sentiment is heating up, with traders heavily purchasing Bitcoin and Ethereum put options to hedge against potential risks. Data shows a surge in demand for Bitcoin put options with strike prices of $115,000 and $95,000 expiring on October 31, while call options with a strike price of $125,000 expiring on October 17 have shifted from buying to selling, reflecting bearish short-term market sentiment.
Additionally, traders are also focusing on Ethereum options with strike prices of $4,000 (expiring October 31) and $3,600 (expiring October 17), while a significant amount of put options with a strike price of $2,600 expiring on December 26 have been purchased. Nic Puckrin, co-founder of Coin Bureau, stated that although the recent crash has cleared excessive leverage, Bitcoin must break through key resistance levels to achieve a new all-time high.