Bitcoin Options Traders Shift Bullish: Here's Their Strategy For Q3

by Murtuza J Merchant Benzinga Staff Writer

Zinger Key Points

The 10x Research report advises long Bitcoin positions while selling upside calls to capitalize on low volatility and generate returns.
Market data shows traders expect Bitcoin to stay within a range, but positioning hints at a potential gradual breakout higher.
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Bitcoin BTC/USD traders are quietly adjusting their strategies, moving away from downside protection and increasingly positioning for potential gains, according to a new report from 10x Research.

The report shared with Benzinga on Monday, highlights a significant rotation from put buying to call selling, as recent market activity points to declining volatility and changing sentiment.

The notional value of Bitcoin options has dropped sharply, falling by $13 billion, or 33%, in just a few days.

This shift, according to 10x Research, could signal a critical turning point for Bitcoin's price action and the broader derivatives market.

While Bitcoin appears to be consolidating near the $100,000 level, traders are now showing reduced appetite for downside hedges and are instead focusing on selling upside calls to generate yield in a calmer market environment.

The data indicates that institutional flows, macroeconomic shifts, and derivatives positioning are shaping expectations for a potentially steady upward trend.

Also Read: Bitcoin Yields Of Up To 8% Are No Longer A Fantasy: Here’s Who’s Offering Them

10x Research noted that ETF inflows into Bitcoin remain steady, while miner and retail selling continues to offset some of the institutional demand.

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The Federal Reserve's dovish tone, record-high U.S. equities, and easing tariff concerns are further supporting positive sentiment.

The report emphasized that last week's major options expiry, which saw many put positions expire worthless, may have served as a clearing event for downside protection.

This, combined with the rotation to call selling, could ease the selling pressure that has previously capped Bitcoin's attempts to break out.

10x Research's base case remains that Bitcoin is in a consolidation phase but that risks are now skewed to the upside.

They recommend holding Bitcoin long while selling upside calls to benefit from the declining volatility and to generate additional yield.

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