Crypto Trader Hedges BTC Rally After 40% Rise in 4 Weeks, Options Data Show

While the consensus is that this event, coupled with strong inflows into US-based exchange traded funds (ETFs), signals a supply-demand imbalance and the potential for a continued upside, some traders have begun positioning for a sharp decline. . They have begun buying Bitcoin puts or short options at strike prices well below current market rates as perpetual funding rates point to an overheated market and could see a correction down 10% or more.