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Bitcoin, ether traders aren't fully buying the bounce, options markets show
Key takeaways
- With bitcoin BTC$61,820.55 and the broader crypto market showing signs of life, defensive positioning in the market has eased, not disappeared, a sign of continued caution.
- Bitcoin's one-week, 25-delta put-call skew, which measures the difference in volatility for puts relative to calls, was around 16%.
- The one-, three-, and six-month skews also show put premiums of around 10% or more.
With bitcoin BTC$61,820.55 and the broader crypto market showing signs of life, defensive positioning in the market has eased, not disappeared, a sign of continued caution.
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.
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