Traders Bet Against Bitcoin as Price Declines Amid Market Uncertainty

New York, NY — Traders are betting against Bitcoin as the cryptocurrency struggles to hold its value. On Monday, Bitcoin traded at approximately $108,600, nearly 10% below its all-time high of $124,500 reached on August 14.

As the market anticipates significant economic data to be released later this week, traders on the Deribit options platform have purchased over $5 billion in bearish puts to expire on August 29. A remarkable 17% of these puts, valued at nearly $1 billion, target prices between $108,000 and $112,000.

“This week is being referred to as the heaviest of 2025,” said a spokesperson for Deribit. Puts provide traders the option to sell an underlying asset at a predetermined price, allowing them to hedge against potential losses.

Market sentiment is further complicated by uncertainty surrounding potential interest rate cuts from the Federal Reserve. In a recent analysis, Sygnum Bank’s Head of Research, Katalin Tischhauser, mentioned that remarks from the Fed may create confusion about its intentions regarding interest rates.

Despite the prevailing bearish outlook, some traders continue to place bullish bets. A significant call position has emerged at $120,000, allowing traders to buy Bitcoin at a discounted rate if it surpasses this price point.

The bearish trend in Bitcoin is echoed across the cryptocurrency market, which has seen nearly a 5% decline over the past week, influenced by a broader downturn in U.S. equities. The Nasdaq dropped 1.2% on Friday, amid concerns surrounding firms like Nvidia, which saw a 3% decline due to export-control worries affecting sales to China.

Analysts at 10x Research have warned that the trajectory towards $200,000 for Bitcoin is “extremely unlikely,” forecasting only a 54% chance of reaching $140,000 by year’s end. Low trading volume and heavy selling pressure from miners are contributing to the muted expectations.

The overall trend reflects a concerning market imbalance that may lead to further price volatility, as aggressive selling continues to dominate Bitcoin exchanges. Meanwhile, sentiment on betting platforms like Polymarket indicates a 71% likelihood that Bitcoin will reach only $125,000 in 2025, while predictions for $200,000 stand at just 5%.