Bitcoin’s brutal sell-off sparks a flurry of trading in related stocks, including one big bullish bet

AI Market Analysis

Bitcoin’s rebound above $60,000 after a sharp sell‑off has reignited interest in crypto‑linked equities and derivatives. The surge in options activity on the iShares Bitcoin Trust ETF (IBIT) and large directional bets on Coinbase suggest traders are positioning for a potential upside move, while the bearish diagonal spread on Strategy indicates hedging against further downside. This mixed sentiment could increase volatility in crypto‑related stocks, with investors monitoring price action for confirmation of a sustained recovery. The broader market may see modest risk‑on bias if Bitcoin holds above key support, but lingering uncertainty around AI narratives and macro factors could keep pressure on risk assets.

If Bitcoin stabilises, Coinbase (COIN) stands to benefit from both higher trading volumes and the bullish options positioning described, potentially driving the stock above $183 in the coming weeks. Conversely, a renewed pullback in Bitcoin could dampen sentiment and pressure Coinbase shares lower, especially given its exposure to crypto market swings. Traders should watch Bitcoin’s price trajectory and implied volatility for cues on the equity’s short‑term direction.

Bitcoin is back above the $60,000 mark after falling below that key level for the first time since October 2024 on Friday.
The world’s largest cryptocurrency has lost about 27% of its value in 2026, and it’s now about 50% off its all-time high. Despite the carnage, traders aren’t backing away from this space. The iShares Bitcoin Trust ETF (IBIT) was among the top 20 most popular tickers in the options market by volume, and two of the top 15 largest options trades by dollar amount were in Strategy and Coinbase on Monday.
Each of those trades painted a very different picture of where this market could be heading next.
In Michael Saylor’s Strategy, one trader sold 29,425 of the 125/180-call diagonals, collecting about $56 million in the process. Specifically, the trader sold the 125-strike calls expiring Aug. 21 and used the proceeds to buy the 180-calls expiring June 18. It’s an options strategy that is most profitable if Strategy shares drop and stay below $125 through August expiration. Ideally, you want both calls to expire worthless, allowing you to pocket the full credit.
The bitcoin treasury company’s recent sales of the flagship crypto – its first in years – have spooked investors in both the company and the broader cryptocurrency world. But one top expert thinks a rebound is likely.
“In the face of the onslaught of AI narratives undermining trust of traditional systems, bitcoin remains the soundest money, and the resilience of its proof of work architecture has been demonstrated,” said Tom Lee, BitMine chairman and FundStrat head of research.
That resilience will be the key to any crypto comeback, and to Monday’s other marquee crypto trade in Coinbase, where one trader is betting about $21 million on a sizable comeback for the hard-hit exchange stock.
This trader also used a diagonal strategy, selling 10,990 June 18 expiration calls for $4.9 million and buying $26 million worth of Aug. 21 expiration 160-calls. While this setup also profits from time decay, it’s a decidedly more bullish position as the trader is hoping the longer-dated calls appreciate.
This trade takes advantage of elevated premiums in Coinbase to generate immediate income, while positioning for a longer-term move higher in the name. For those August expiration calls to be profitable, the stock will have to move above $183.40 per share, or about 13% higher than where it was in Monday’s session.

Source: CNBC

Disclaimer: this content is informational analysis only and does not constitute investment advice.