Bitcoin, ether traders aren’t fully buying the bounce, options markets show: Crypto Daily

With bitcoin BTC$61,884.29 and the broader crypto market showing signs of life, defensive positioning in the market has eased, not disappeared, a sign of continued caution.

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This is evident from the BTC and ether (ETH) options markets listed on Deribit, where put options, derivative contracts offering protection against price slides, continue to trade at a premium to calls, or bullish contracts.

Bitcoin’s one-week, 25-delta put-call skew, which measures the difference in volatility for puts relative to calls, was around 16%. It showed puts outpacing demand by a 16% vol point premium. That’s still notably elevated, though significantly lower than the 25% of 10 days ago, according to data source Velo.

The one-, three-, and six-month skews also show put premiums of around 10% or more. The same is true for ether.

The message is clear. Downside fears persist, keeping demand for insurance against price declines intact even though BTC long-term holders and ETF investors appear to have returned to accumulation.