With bitcoin and the broader crypto market exhibiting indicators of life, defensive positioning in the market has eased, not disappeared, an indication of continued warning.
That is evident from the BTC and ether (ETH) options markets listed on Deribit, the place put options, by-product contracts providing safety towards worth slides, proceed to commerce at a premium to calls, or bullish contracts.
Bitcoin’s one-week, 25-delta put-call skew, which measures the distinction in volatility for places relative to calls, was round 16%. It confirmed places outpacing demand by a 16% vol level premium. That’s nonetheless notably elevated, although considerably decrease than the 25% of 10 days in the past, in response to information supply Velo.
The one-, three-, and six-month skews additionally present put premiums of round 10% or extra. The identical is true for ether.
The message is obvious. Draw back fears persist, retaining demand for insurance coverage towards worth declines intact despite the fact that BTC long-term holders and ETF traders seem to have returned to accumulation.
