Greeks.live: Block Options Trading Shows Institutional Investors Intensifying Hedge Against Bitcoin Downside Risks

On 19 March, Greeks.live Macro Researcher Adam posted on the X platform that there were only five large block orders today, all of which were Bitcoin-related trades. A number of large buy put option trades suggest that concerns about falling cryptocurrency prices are growing, particularly a buy risk reversal trade with a face value of $33,445,500, highlighting that institutional investors are actively hedging against downside risk.

In terms of trading strategies, some investors chose to sell put options, suggesting optimism about market stability or a willingness to buy assets at strike prices in the event of a price decline, reflecting a clear divergence in market views. From a risk management perspective, buying risk reversal strategies reflects a conservative view of upside potential while protecting against downside risk, suggesting that market uncertainty is increasing.

Adam concludes that today's block trades show that institutional investors are actively hedging their risk as concerns about falling cryptocurrency prices intensify, while some investors are selling options to gain royalties, a clear divergence in market sentiment.