How are Bitcoin options traders positioning for the US banking crisis?

For the past 14 days, cryptocurrency markets have been trading within an unusually tight 7.1% range. In other words, investors are unwilling to place new bets until there’s additional regulatory clarity, especially in the United States.

The total crypto market capitalization fell by 1% to $1.2 trillion over the seven days ending May 4, primarily as a result of Bitcoin’s (

Traders pricing low odds of a break above $1.2 trillion

The options market shows whales and market makers unwilling to take protective puts even after Bitcoin crashed 7.8% on May 1. However, given the balanced demand on futures markets, traders seem hesitant to place additional bets until there’s clarity on whether the U.S. Treasury will continue to bail out the troubled regional bank sector.

It is unclear whether the total market capitalization will be able to break through the $1.22-trillion barrier. But one thing is for sure: Professional traders are not betting on a crypto price crash, given that the demand for protective puts has been muted.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.