An increase in put options indicates traders' growing demand for downside protection following bitcoin's recent price correction, analysts said.

According to Deribit data, the put-call ratio for bitcoin options open interest ahead of this Friday's weekly expiry has risen above one, which is seen as a bearish market signal. A ratio above one means significantly more put options than call options are being traded. This indicates that more investors are betting on or hedging against a price decline rather than an increase.

Deribit data shows that the largest cluster of options open interest for Friday's expiry consists of puts at a strike price of $58,000, with significant concentrations of puts also at the $52,000 and $48,000 strike prices.