Bitcoin (BTC) has been trading between $60,000 and $70,000 (USD) for three weeks as of February 27, 2026, but institutional investors in the derivatives market are bracing for a possible price decline below this strong psychological threshold.
“ETF (exchange traded fund) holders and corporate treasuries are buying six-month and one-year put options with strike prices below $60,000 as insurance for their portfolios,” Jean-David Pequigno, director of the Deribit Derivatives Platform, told reporters.
This statement comes against the backdrop of approximately $1.5 billion in open interest on $60,000 put options. it is, Highest trading volume among all strike prices Platforms vary in maturity as shown in the following graph.
A put option allows you to sell Bitcoin at a pre-set price even if it is trading below that price. In this sense, they act as downside protection for investors who buy them. The Deribit exchange concentrates approximately 80% of crypto options trading, so its activity reflects market strategy.
The weight of Bitcoin’s institutional investors partly explains this increased coverage. U.S. spot ETFs hold about 1.26 million BTC, or about 6% of the supply. On the other hand, listed companies hold approximately 1.14 million BTC, which is 5.7% of the total.
Although Bitcoin’s price has rebounded to $70,000 this week, Pequinho pointed out that: Demand for coverage continues. 30-day puts still trade with about 7% more volatility than calls. This “suggests that the smart money continues to pay for downside protection rather than chasing the upside,” he said.
Therefore, the executive added that approaching the $60,000 level is possible. This could lead to option selling, which could put downward pressure on BTC price.. This process allows investors to rebalance their exposure towards a neutral position.
There are many bearish expectations for BTC
This positioning is Bitcoin is trading almost 50% below its all-time high This peak was recorded the year after the most recent halving. Historically, this period marks the end of a bullish cycle and the beginning of a significant correction of nearly 80%.
As reported by CriptoNoticias, it is estimated that this pattern could lead to a continuation of the bear market, also motivated by the macroeconomic scenario. The unpredictability of President Donald Trump’s tariff policy and the uncertainty of whether interest rates will fall are causing risk aversion in the market.
In this context, prediction markets are increasing bets on a possible drop towards $40,000. On the other hand, analysts like Willy Wu argue that: The bottom of this bearish trend could occur in the fourth quarter of 2026amounting to approximately $45,000.
However, Wu warns that a strong correction in global markets could cause Bitcoin to fall to levels as low as $30,000 or $16,000, which were the bearish bottom of the 2022 crypto winter.
Still, long-term bullish expectations remain due to asset scarcity and institutional investor interest. Bitcoin has plans to reduce its issuance every four years through a halving, which will help it rally in the face of demand. Therefore, it is considered by many to be digital gold.