As U.S. President Trump Approaches “Tariff Liberation Day” on April 2
Cryptocurrency traders are flocking to the options market to hedge against the risk of further price declines. Open interest in put options with a strike price of $80,000 is the highest among contracts expiring on April 4, indicating a growing demand for downside protection.
Bitcoin Faces the $80,000 Defense
Data from the Deribit options exchange shows that the number of open contracts for put options (puts) with a strike price of $80,000, expiring on Friday, April 4, has reached 2,880. The surge in put option purchases reflects an increasing demand for downside protection, as these options grant holders the right to sell at a specified price within a certain period.
The put/call ratio for contracts expiring on April 4 on Deribit is 1.36, indicating a strong preference in the market for put options, as they can lock in losses from a price decline. The continuous rise in gold prices also highlights growing public concern.
Bitcoin Has Dropped 25% from Its Peak
Last week, Trump signed an order imposing a 25% tariff on imported cars and auto parts, and with “Tariff Liberation Day” approaching on April 2, market uncertainty has intensified.
(U.S. Triggers Auto Trade Storm: Trump’s “Liberation Day” Tariffs Reshape Global Auto Market)
A series of crypto-friendly declarations made by Trump when he took office once drove Bitcoin’s price to a historic high of $109,588 in January, but his current trade policies have led to a retracement of over 25% in BTC prices.
This morning, Bitcoin briefly dropped to $81,565. Will the approach of tariff day, along with the expiration of a large number of contracts, trigger a liquidity crisis in the market? Is the previously tested level of $77K already the bottom, or will it further decline to the $70K mark? Amidst significant market uncertainty, investors must manage their positions and risks carefully.
(Market Focus Returns to Trade War, BTC Consolidates; Arthur Hayes: $77K Could Be the Bottom)
Risk Warning
Investing in cryptocurrency involves a high degree of risk, and prices can be highly volatile. You may lose your entire principal. Please assess risks carefully.