Bitcoin Rally Cools as ETF Options Traders Dial Back Bullish Bets

Bitcoin is showing signs of exhaustion after setting a new record high above $110,000 last week. The cryptocurrency is now trading sideways around $104,309.43, and momentum in the derivatives market appears to be fading alongside price action.

Options tied to BlackRock’s spot bitcoin ETF (IBIT) are reflecting a more cautious outlook from investors. Specifically, the one-year put-call skew—a key measure of how traders value downside protection versus upside potential—has risen back toward neutral levels. The skew had hit a four-month low of -3.8 just two weeks ago, suggesting strong bullish sentiment at the time. Now, according to Market Chameleon, it has rebounded to nearly zero, implying that optimism has cooled.

The shift suggests that options traders are no longer aggressively positioning for further upside, and may even be preparing for a potential pullback.

This more balanced—or hesitant—stance is also visible in the broader options market. On Deribit, one of the largest crypto options exchanges, the short-term call skew has weakened, according to Amberdata. Call options expiring in the next two weeks are now priced roughly on par with puts, a signal that the near-term bullish bias has softened.

While Bitcoin remains historically elevated, current positioning indicates that traders may be bracing for increased volatility—or simply waiting for a new catalyst to renew upside momentum.