Recently, large Bitcoin investors have become more defensive, which is concerning. Looking at Deribit data, ETF holders and corporate finance departments are heavily buying put options below $60k. Essentially, this means they are heavily hedging against the risk of Bitcoin falling in price.

Unsettled positions in $60k puts have reached an astonishing $1.5 billion, the highest level across Deribit's entire options market. Long-term investors holding these as perpetual assets are preparing for a significant downturn, which indicates that market sentiment has become quite cautious. About 1.26 million BTC have flowed into US spot ETFs, and publicly listed companies hold 1.14 million BTC, so their movements have a substantial impact on the overall market.

Currently, Bitcoin's price is around $74.5k, but the options market remains bearish. The 30-day puts still carry about a 7% volatility premium over calls, meaning smart money is paying to hedge against downside risk rather than expecting an increase. There are also concerns that volatility could spike further if the price drops below $63,000, likely influenced by dealer short gamma positions.