Traders in Bitcoin (BTC) and Ether (ETH) are taking precautionary measures as the summer months near, showing a preference for downside protection even as market optimism persists. This strategy is reflected in an options-based approach known as the 25-delta risk reversal, which combines buying put options with the sale of call options. Data from Amberdata indicates that current risk reversals for BTC and ETH suggest investors are preparing for potential volatility, with notable demand for puts, especially for BTC in the June, July, and August tenors.
As market conditions evolve, BTC's risk reversals display a retreat into put options—signaling a shift towards protective strategies among long holders. Singapore-based QCP Capital noted that ongoing adjustments indicate investors are bracing for possible price declines. Additionally, a report from Coinbase Institutional revealed a rise in open interest for BTC options, pointing to growing market concern, especially as BTC's price struggles to maintain levels above $100,000. Factors such as profit-taking by long-term holders and miner liquidations are contributing to a lack of momentum, complicating sustained upward movement in prices.
An interesting development is the notable activity on over-the-counter platforms, where bearish trades trickled in, including a significant put spread in BTC. Market observers remain divided; while some analysts expect potential rallies to $130,000-$135,000, the recent breakdown below the 50-day simple moving average suggests a growing risk of falling below key support levels.
As market conditions evolve, BTC's risk reversals display a retreat into put options—signaling a shift towards protective strategies among long holders. Singapore-based QCP Capital noted that ongoing adjustments indicate investors are bracing for possible price declines. Additionally, a report from Coinbase Institutional revealed a rise in open interest for BTC options, pointing to growing market concern, especially as BTC's price struggles to maintain levels above $100,000. Factors such as profit-taking by long-term holders and miner liquidations are contributing to a lack of momentum, complicating sustained upward movement in prices.
An interesting development is the notable activity on over-the-counter platforms, where bearish trades trickled in, including a significant put spread in BTC. Market observers remain divided; while some analysts expect potential rallies to $130,000-$135,000, the recent breakdown below the 50-day simple moving average suggests a growing risk of falling below key support levels.
