with bitcoin and the broader crypto market is showing signs of life, defensive positioning in the market has eased, not disappeared, a sign of continued caution.
This is evident in the BTC and ether (ETH) options markets listed on Deribit, where put options, derivative contracts that offer protection against price declines, continue to trade at a premium to bullish calls or contracts.
Bitcoin’s one-week 25 delta buying bias, which measures the difference in the volatility of put options relative to call options, was around 16%. It showed that puts outperform demand with a 16% volume point premium. This figure is still remarkably high, although significantly lower than the 25% 10 days ago, according to data source Velo.
The one-, three- and six-month biases 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 price declines intact even as long-term BTC holders and ETF investors appear to have returned to accumulation.
