As the "Tariff Liberation Day" of US President Trump approaches on 4/2, cryptocurrency traders are flocking to the options market to hedge against the risk of further price declines. The number of outstanding put option contracts with a strike price of $80,000 is the highest among contracts expiring on April 4, indicating an increasing demand for downside protection.

BTC Faces $80,000 Defense Battle

Data from Deribit options exchange shows that the number of outstanding put option contracts with a strike price of $80,000 reaches 2,880 on the expiration date this Friday, 4/4. The surge in put option purchases indicates an increasing demand for downside protection, with put options giving holders the right to sell at a specific price within a certain period.

The put/call ratio on Deribit for options expiring on April 4 is 1.36, showing a strong preference for put options that can lock in potential losses from price declines. The continuous rise of gold also highlights growing concerns.

BTC Has Dropped 25% from Its High

Trump signed an order last week imposing a 25% tariff on automotive and auto parts imports, with the "Tariff Liberation Day" on 4/2 approaching, intensifying market uncertainty.

(US Sparks Automotive Trade Storm: Trump's "Liberation Day" Tariffs Reshape Global Car Market)

A series of crypto-friendly declarations when Trump took office once pushed BTC to a historical high of $109,588 in January, but his current trade policies have led to a price correction of over 25%.

BTC dropped to $81,565 this morning. With the approaching tariff day and massive contract expirations, will this trigger a large-scale market liquidation crisis? Has the 77K level, previously tested by the market, become the bottom? Or will it further test the 70K mark? In a market filled with uncertainty, investors must manage their positions and risks carefully.

(Market Focus Returns to Trade War, BTC Consolidates, Arthur Hayes: 77K Might Be the Bottom)