The crypto market took a sharp turn in the past two weeks. Bitcoin fell below the key $100,000 level and dropped more than 27% from its recent high. Stocks linked to crypto — like COIN and MSTR — also fell quickly.
While many investors were unsure what to do, two Tigers used options to catch this move and made big profits. Let’s look at how they did it.
🎉 Tiger Winners
@稻田里的守望者 Bought $Coinbase Global, Inc.(COIN)$ put options and made +239%.
@Mingsu Sold $Strategy(MSTR)$ call options and earned a massive 14782 return.
🚨 Why Did Crypto Fall So Fast?
The main reason is the change in expectations for the U.S. Federal Reserve. Earlier, most people thought the Fed would cut interest rates in December. Now, the chance of a cut is below 50%. When interest rates may stay higher for longer, risky assets like Bitcoin usually fall.
Bitcoin also showed a negative technical signal called a “death cross” — a sign that the short-term trend has turned weaker. This made investors more worried.
At the same time, big companies that bought a lot of Bitcoin earlier this year — including MSTR — are now facing pressure because prices dropped below their buying level. Retail traders also reduced buying after a large sell-off in October caused billions in liquidations.
Overall: less demand, more selling, weaker chart signals → crypto became very unstable.
What Did These Tigers Do Right?
In a falling market, options can work very well.
It works like this:
When the stock price goes down, put options go up.
When the stock price does not rise, call options lose value, so the person who sold the call earns money.
Simple idea:
“If prices drop, puts make money. If prices stay weak, call sellers make money.”
Crypto-related stocks usually move even more than Bitcoin — they rise faster and fall faster. So when Bitcoin dropped, these stocks fell even harder. This made put options and call-selling strategies even more effective.
You don’t need to catch the bottom or guess the rebound. Just follow the trend — if prices keep falling, the profit keeps growing.
So the question is — Will Bitcoin continue to slide, or is a rebound coming soon? Share your thoughts in the comments.
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