Bitcoin, ether traders aren't fully buying the bounce, options markets show
CoinDesk 2026-07-03 11:27:44
Context: Bitcoin and ether traders are cautious, with options markets showing that they are not fully buying into the recent bounce in the crypto market. Despite bitcoin's price showing signs of life at $61,820.55, traders are still hedging against potential price slides. This caution is evident in the options markets on Deribit, where put options continue to trade at a premium to calls.
Key Facts
- The one-week, 25-delta put-call skew for bitcoin was around 16%, indicating that put options are outpacing demand by a 16% volatility point premium, according to data from Velo.
- The one-, three-, and six-month skews for bitcoin and ether also show put premiums of around 10% or more, suggesting that downside fears persist among traders.
- A large block flow in options involved a long call condor on BTC, with long positions in July 17 expiry calls at $64,000 and $70,000 strikes and short positions in the same expiry calls at $66,000 and $68,000.
- The ether-bitcoin (ETH/BTC) ratio is rising and approaching its 100-day simple moving average (SMA), a level that has historically seen strong selling pressure since December.
- The U.S. markets are closed on Friday for the Independence Day weekend, which may lead to thin liquidity and erratic moves in the crypto market.