Bitcoin Crashes—Options Sell Panic in HUT, Bet on MSTR Rebound

Bitcoin plunged more than 10% in a single session to around $65,000, sending immediate pressure through the broader crypto ecosystem. Mining stocks and bitcoin treasury names sold off in tandem, with declines broadly exceeding 15%. Among the hardest hit were $Hut 8 Mining Corp(HUT)$   and $MicroStrategy(MSTR)$   , both of which fell more than 15% on the day, placing them among the sharpest decliners in the crypto-linked equity space.Despite the steep selloff, options data suggest that capital has not exited crypto assets outright. Instead, positioning indicates a more deliberate approach: selling puts in the near term to navigate volatility, while buying calls further out to position for a potential rebound. Against this backdrop, both HUT and MSTR saw large-scale new options positions established.

Following Bitcoin's abrupt decline, short-term uncertainty surged, making directional bets less attractive on a risk-adjusted basis. At this stage, capital is primarily focused on determining whether the selloff is nearing completion and whether market behavior is shifting from a one-way move into a consolidation phase. This dynamic is most clearly reflected in the options activity surrounding HUT.

After HUT fell to around $46, with its single-day decline already exceeding 15%, the market did not show signs of panic-driven put buying. Instead, traders concentrated on selling near-dated puts, with strikes largely clustered in the $46–$48 range. Selling puts at these levels does not signal a bullish call on an immediate rebound. Rather, it reflects a more restrained assessment: the probability of a disorderly continuation lower in the short term is diminishing. As long as prices do not break decisively below the lower bound of this range, put sellers can benefit from time decay and a pullback in implied volatility. As a result, HUT's options positioning represents a very short-term volatility-selling strategy, aimed at allowing market sentiment to digest the shock rather than expressing a directional long view.

Following Bitcoin's sharp selloff, capital views this leg of the decline as approaching its later stages and transitioning into a consolidation phase.

In contrast to HUT's short-dated options activity, MSTR's options positioning reflects a longer time horizon. Despite the stock also posting a single-day decline of more than 15%, traders showed clear interest in April-dated call options, pointing to a deliberate medium-term positioning strategy. By extending duration, capital is intentionally stepping away from Bitcoin's most violent short-term fluctuations and shifting its focus to a timeframe measured in weeks to months. Within that window, deleveraging pressure, sentiment repair, and risk repricing are more likely to unfold, making directional upside a more attractive trade.

Accordingly, the call buying in MSTR represents a wager that once short-term shocks are absorbed, Bitcoin retains room for recovery, with MSTR offering greater upside elasticity in such a scenario.

Overall, the path implied by the options market is clear. In the short term, capital views the selloff as largely complete but still in need of digestion, favoring volatility-selling strategies. In the medium term, traders are beginning to position for a rebound through longer-dated directional options. For investors, this signal is particularly important. At this stage, it may be premature to chase highly volatile assets on expectations of an immediate rebound, just as it may be risky to press bearish bets amid elevated fear. Options data suggest that cryptocurrencies are entering a near-term consolidation phase, with the more consequential trend decision likely to emerge over a longer horizon.

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