Summary
This is an excerpt from CoinDesk newsletter ‘Daybook.’ Sign up here, if you haven’t already.
With bitcoin BTC$61,657.03 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, as reported by data source Velo.
The one-, three-, and six-month skews also demonstrate 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.
