Bitcoin Investors Buy Protection Against Price Drops Below $60,000

Investors with long-term vision are buying protection against potential price crashes in the bitcoin market. According to Deribit, a leading cryptocurrency exchange, investors are purchasing put options as insurance policies to safeguard their holdings.

The surge in demand for these contracts has reached unprecedented levels on Deribit, with over $1.5 billion in open interest across various strikes and expiries. This trend signals that market participants are bracing themselves for potential losses if the price of bitcoin falls below $60,000.

The put options work as a form of insurance, allowing investors to sell their holdings at a predetermined price if the market value drops below a certain threshold. In this case, the contracts would be triggered if the price of bitcoin falls below $60,000. This move highlights the growing concern among investors that any recovery in the price may be short-lived.