Bitcoin options trade shows more bets on retreat after failing to breach $100,000

Investors are anticipating a significant downward move after bitcoin failed to hit an all-time peak of $100,000.

Investors in the world's largest cryptocurrency are anticipating a significant downward move after bitcoin failed to hit an all-time peak of $100,000, according to a crypto trading platform citing recent options activity.

Bitcoin hit a record high of $99,830 on November 22, but it has since fallen more than 8% to a one-week low of 91,377.32 on Tuesday.

The best-known cryptocurrency has soared 120% so far this year and about 34% this month with the election of Donald Trump as U.S. president and a slew of pro-crypto lawmakers in Congress. Trump embraced digital assets during his campaign, promising to make the United States the "crypto capital of the planet," and accumulate a national stockpile of bitcoin.

Nick Forster, founder of onchain options decentralised protocol Derive with total trade volume of $7.1 billion, said in emailed comments on Tuesday that the so-called call-put skew index for the upcoming December 27 bitcoin expiry showed a significant 30% drop in the last 24 hours, as market participants shifted toward more protective strategies.

The call-put skew, which reflects market sentiment, refers to the difference in implied volatility between calls (options to buy) and puts (options to sell). This skew still shows a preponderance of calls over puts, although it has since declined.

"It suggests traders are hedging against potential downside risks," Forster said, likely in response to BTC falling sharply. "However, pullbacks like these are not uncommon in bull markets."

Investors are looking to December 27, when $11.8 billion in bitcoin options expire that could trigger major moves in either direction.