Bitcoin (BTC) traders continue to favor downside protection, with put options trading at a premium across all maturities, even after recent bullish catalysts, according to Deribit CEO Luuk Strijers.
Market Backdrop
Earlier this week, the U.S. Federal Reserve cut interest rates by 25 basis points and indicated that an additional 50 basis points of easing may come by year-end. In parallel, the SEC unveiled a streamlined listing standard for crypto ETFs, reducing approval times and supporting broader market participation.
Despite these positive developments, Deribit’s DVOL index, which tracks 30-day implied volatility, remains muted at roughly 24%, the lowest level in two years. In typical bullish environments, call options — bets on upward price movement — are pricier than puts, but on Deribit, puts remain more expensive.
Options Skew Signals Caution
“Skew across all time frames remains flat to negative,” Strijers said. “Demand for puts persists as traders hedge downside exposure, while call overwriting flows are capping the upside.”
Options skew measures the implied volatility difference between calls and puts. Negative skew suggests bearish sentiment, while positive skew reflects bullish expectations. Currently, 7-, 30-, 60-, and 90-day skews are slightly negative, with the 180-day skew neutral, according to Amberdata — signaling ongoing concern over a potential BTC pullback.
Investors may be wary that the Fed’s easing was already priced in, and that a weakening macro outlook could reduce appetite for riskier assets like bitcoin.
“Following the Fed’s move, some earlier optimism has faded,” Strijers explained. “The market appears to be waiting for the next catalyst — macroeconomic or crypto-specific — to break the current balance between caution and optimism.”
Market Maturity and Strategic Flows
Sidrah Fariq, Deribit’s global head of retail sales and business development, noted that the persistent put bias reflects growing market sophistication.
“BTC options are increasingly behaving like S&P index options — a sign of maturity, but also of caution,” Fariq said.
Traders are also employing covered calls, selling call options against spot BTC holdings to generate premium income. While this strategy provides yield, it caps upside potential, particularly in longer-dated options. Covered calls have grown popular among BTC, ETH, and XRP traders, contributing to the current put-heavy market positioning.
