The crypto derivatives exchange Deribit is sitting on over $1.2 billion in notional value tied to Bitcoin put options with a $60,000 strike price. The position comes on the heels of a brutal five-day liquidation event that wiped out $5.3 billion in leveraged long positions between June 1 and June 5.
The Options Market Setup Before the Selloff
Blockchain analytics firm Glassnode described the pre-selloff options market as having a put-rich skew and subdued front-end volatility through late May. That defensive posture, they noted, was a warning sign before the price drop. One-week implied volatility fell from roughly 39% to 31% during that period, while one-month realized volatility sat at about 27%. One-month implied volatility was around 35%, and the 25-delta skew hit roughly 24% in favor of puts — a clear bias toward downside protection.
A Short-Gamma Cluster Near $75,000
Glassnode also flagged a short-gamma cluster near the $75,000 level in May, with approximately $3.2 billion in negative exposure. That means dealers who sold options were forced to hedge by selling more Bitcoin as the price approached that zone, amplifying the downward move. The cluster acted like a magnet drawing price lower, and once it broke, the selling pressure intensified.
What a Break Below $60,000 Could Trigger
If the $60,000 level breaks cleanly to the downside, the options market could accelerate the selling. Dealers holding the large put position at that strike would need to hedge by selling additional Bitcoin or futures, potentially creating a feedback loop. The $60,000 area can function either as a price magnet — drawing the market in — or as an air pocket if the price falls through it. In that case, the hedging flows could push the drop further and faster than a pure spot selloff would.
The exact mechanics depend on dealer positioning and gamma exposure, which shifts daily. But the sheer size of the put open interest — $1.2 billion notional — makes $60,000 a key level to watch in the coming days.
