The DEX Bitcoin traders are preparing for downward movement with put options | CoinDesk JAPAN

• Traders on the decentralized exchange Derive.xyz are preparing for the downward movement risk of Bitcoin, in contrast to the centralized exchange Deribit.
• The put options, which account for over 70% of recent trading volume, indicate that Bitcoin traders on Derive.xyz are taking a defensive stance.
• Derive.xyz's traders are showing a bullish outlook on Ethereum.

The trading volume of Bitcoin (BTC) options on the major decentralized on-chain platform Derive.xyz indicates that traders are preparing for a downward movement in price fluctuations over the next few weeks.

According to data released by Derive, as of June 30, 20% of the total BTC options open interest on the platform (approximately $54 million, over ¥7.83 billion) was concentrated in put options expiring on July 11 (strike prices of $85,000, $100,000, and $106,000).

Nick Forster, the founder of Derive, stated to CoinDesk, "This suggests that traders are trying to prepare for potential downward movement, namely uncertainty in the macroeconomy and profit-taking after the recent rise."

Put options give the holder the right to sell the underlying asset, such as BTC, at a predetermined price by a specific future date. Buyers of put options are implicitly bearish on the market and are looking to hedge against or profit from potential downward movement in the price of the underlying asset. Open options refer to the dollar equivalent value of the number of outstanding option contracts at a given point in time.

Mr. Forster added that put options accounted for more than 70% of the trading volume in the past 24 hours, indicating that "BTC traders are on the defensive."

This bearish trend is contrary to the movements of Deribit, a major centralized cryptocurrency options provider. At Deribit, traders abandoned put options set to expire in July and bought back bullish call options. This adjustment occurred when the BTC price rose more than 7% last week, showing a strong rebound from levels below $100,000.

Deribit stated that on X, "there was a sell-off of put options under $100,000 and a buyback of call options above $108,000 to $115,000. Due to the calm market environment and the upcoming holiday from July 4th (Independence Day), there has been an increase in inventory sell-offs by dealers."

DEX traders are optimistic about ETH

Traders on Derive are showing a bullish outlook on Ethereum, with approximately 30% of open positions concentrated in call options with a strike price of $2900, and an additional 10% concentrated in call options with a strike price of $3200.

"This position seems to be backed by expectations for the ETHCC (Ethereum Conference Cannes) to be held in Cannes. Historically, this event has been associated with product launches and the development of the ecosystem. Traders are likely anticipating factors that will support upward momentum," pointed out Mr. Foster.

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