Analysis: Traders are heavily buying Bitcoin and Ethereum put options, indicating the market is hedging against potential downside risks.

PANews reported on October 14 that after last Friday's liquidation wave, options market investors are preparing for further volatility and potential declines in Bitcoin and Ethereum, actively positioning themselves for a new round of protective positions against a possible big dump. Sean Dawson, head of research at Derive.xyz, stated that volatility surged last Friday, and market sentiment regarding short-term volatility shows that more people are concerned about downside risks. Data shows that traders are buying a large number of Bitcoin and Ethereum put options, indicating that the market is hedging against potential downside risks. In the Bitcoin market, there has been significant buying of put options with strike prices of $115,000 and $95,000 expiring on October 31, while the $125,000 call options expiring on October 17 have shifted from buying to selling, reflecting a pessimistic short-term outlook. Nick Foster, co-founder of Derive.xyz, mentioned that traders are focusing on options with strike prices of $4,000 (expiring on October 31) and $3,600 (expiring on October 17). He also noted a large number of purchases of put options with a strike price of $2,600 expiring on December 26, suggesting that bearish sentiment is persisting until the end of the year. Nic Puckrin, co-founder of Coin Bureau, stated: “The good news is that this big dump has cleared excessive leverage and temporarily reset market risks, but Bitcoin now faces another battle: it must break through key resistance levels to achieve meaningful new historical highs this year.”