With Bitcoin and with the broader crypto market showing signs of life, defensive positioning in the market has eased, rather than disappearing, a sign of continued caution.
This is evident in the BTC and ether (ETH) options markets listed on Deribit, where puts, derivative contracts providing protection against price declines, continue to trade at a premium to calls or bull contracts.
Bitcoin’s 25-delta one-week call and put bias, which measures the difference in volatility of puts versus calls, was about 16%. It showed that the puts exceeded the demand for a 16% premium in flight points. This figure remains notably high, although significantly lower than the 25% 10 days ago, according to data source Velo.
One-, three-, and six-month spreads also show put premiums of around 10% or more. The same goes for ether.
The message is clear. Downside fears persist, keeping demand for insurance against falling prices intact, even as long-term BTC holders and ETF investors appear to have returned to accumulation.
