Trader Commits $2.36M to Bitcoin Price Volatility Bet With Dual Options Strategy

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A major market participant has taken a significant position on cryptocurrency derivatives platform Deribit, signaling bold expectations about Bitcoin price movements through the first quarter of 2026. According to on-chain data tracked by analyst AiYi, this trader allocated approximately $2.36 million in a sophisticated dual-options approach designed to capitalize on substantial BTC price fluctuations.

The Heaven and Earth Strategy Explained

The trader executed a classic straddle approach, simultaneously acquiring two complementary positions. The bullish leg consists of 660 BTC call options with a $120,000 strike price, costing roughly $860,000. Paired with this is a bearish hedge of 660 BTC put options struck at $80,000, consuming approximately $1.5 million. Both contracts expire on March 27, 2026, creating a defined risk window of about three months.

This “Heaven and Earth” structure reflects a trader betting that Bitcoin price will experience dramatic movement in either direction—the payoff zone extends from $80,000 to $120,000, representing a $40,000 trading range.

What This Bitcoin Price Bet Reveals

With BTC currently trading around $88,000, the trader is positioned between both strikes. The strategy implies confidence that Bitcoin price could surge nearly $28,000 upward or decline approximately $12,000 from current levels by late Q1 2026. This asymmetric risk profile—larger upside potential than downside protection—suggests the trader leans slightly bullish while hedging tail risks.

Such large options deployments typically signal institutional or sophisticated retail players preparing for major Bitcoin price inflection points. The substantial capital commitment underscores conviction in elevated volatility expectations during this period, possibly ahead of anticipated market catalysts or regulatory developments.

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