Bitcoin BTC$84,003.00 has fallen sharply, dropping over 25% to $83,700 this month, and data suggests some traders are bracing for a further decline.

According to blockchain analytics firm Glassnode, traders have been heavily buying short-term BTC put options at the $75,000 strike price on Deribit since bitcoin’s spot price slipped below $94,000 earlier this week.

The $75K put option reflects a bet that Bitcoin's price will fall below that level, echoing the early April dip that bottomed around $74,000.

Glassnode commented on X, "The options market isn’t signaling a bottom yet and is leaning toward the risk of a deeper move."

CoinDesk recently highlighted a clear bearish shift in the Bitcoin options market, with the $85,000 put option becoming the dominant trade, replacing the previously popular $140,000 call option.

Put options have comprised over 65% of all options activity in the past week, indicating aggressive downside hedging by traders. Glassnode noted this also reflects traders exploiting volatility spreads by selling high short-dated volatility and buying longer-dated contracts to capitalize on market dislocations.