The cost of a $70,000 Bitcoin hedge more than doubled in a day
Summary
Deribit data show a November 27 Bitcoin put with a $70,000 strike rose from 0.0145 BTC to 0.033 BTC between November 12 and 13, a 127.6% increase, while its reported implied volatility slipped from 38.97% to 37.67%. Bitcoin fell from above the strike to below it, increasing the put’s value. At the later quote, the ask was about $2,320 before fees. The change in executions does not isolate the effect of each pricing factor, and the BTC-denominated gain differs from its dollar-equivalent increase. The example shows that a fixed-strike hedge can become costlier as Bitcoin falls even when broad volatility gauges remain relatively calm.
