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Bitcoin Price $47K Floor: Whale Makes $20M Options Play

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Teuta Franjkovic
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Key Takeaways

  • Whale bets $20M on Bitcoin price falling below $47k by March end.
  • Trader uses put options to profit if Bitcoin dips below $50k or $43k.
  • Limited downside with capped gains if Bitcoin crashes further.

A hefty options play could see a trader make more than $20 million if Bitcoin falls to $47,000 by the end of March.

Trader Places Large Bitcoin Options Bet for Short-Term Decline

On Tuesday, a trader made a significant Bitcoin (BTC) options transaction , designed to capitalize on an anticipated near-term price drop. Therefore, Bitcoin has now established a baseline at $47,000. The deal involved the purchase of 100 lots of put options for a March 29 expiry. It was made on crypto block trading platform Greeks.Live , with strike prices set at $50,000 and $43,000.

To help finance this, the trader sold 200 lots of put options with the same expiry at a strike price of $47,000. Put options grant the holder the right, but not the obligation, to sell bitcoin at a specific price on or before a certain date. As a result, it is fair to assume the buyer had a bearish outlook.

Trader Executes $20 Million ‘Butterfly’ Bet on BTC with $47K Target

A substantial transaction , known as a block trade, was executed off the public market for over $20 million, according to Greeks.Live. These are typically associated with institutional investors, due to their large size and execution outside of standard market venues.

The deal will maximize profits if Bitcoin’s price hits $47,000 by the expiry date.  This means there is an expectation for a price dip in the coming weeks, but not below the $47,000 mark.

The trade structure aims for a peak profit at a specific mid-range price with limited losses at either extreme. The chart resembles the shape of a butterfly, earning it the moniker “butterfly bet.”

BTC butterfly
Credit: Greeks.Live

‘Whales’ Target Bitcoin Drop with Strategic Bets for March 29

The payoff projection for a notable Bitcoin bet highlights maximum gains if Bitcoin reaches $47,000. On this occasion, the trade will break even at $44,201 and $49,770. It seems it is going this way since, at the time of writing (February 21 2024), the price hovered at around $52,000,

According to Adam, an analyst at Greeks.Live, prominent investors are increasingly placing short positions, anticipating a modest decline in bitcoin’s value before March 29.

He said:

“Recent block trades have been concentrated in two directions – short price or long volatility. Term selection has mostly been concentrated before BTC halving. Looking at the characteristics of the trades, it is likely that traders are holding spot and purchasing hedging positions.”

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Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.
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