Bitcoin (BTC) traders continue to favor downside protection, with put options trading at a premium across all maturities, even amid recent bullish signals, according to Deribit CEO Luuk Strijers.

Macro Developments Support Market Watch

Earlier this week, the U.S. Federal Reserve lowered interest rates by 25 basis points and signaled that another 50 basis points of easing could be expected by year-end. The SEC also introduced a new streamlined process for crypto ETF approvals, reducing wait times and potentially increasing market participation.

Despite these positive signals, Deribit’s DVOL index, tracking 30-day implied volatility, remains muted at roughly 24%, the lowest level in two years. Typically, bullish conditions make call options more expensive than puts, yet at Deribit, puts continue to hold a premium, reflecting ongoing caution.

Options Skew Reflects Cautious Sentiment

“Skew across all time frames remains flat to negative,” Strijers said. “Traders are buying puts to hedge downside exposure, while call overwriting limits upward pressure.”

Options skew measures implied volatility differences between calls and puts. Negative skew signals bearish sentiment, while positive skew reflects bullish expectations. Currently, 7-, 30-, 60-, and 90-day skews are slightly negative, with the 180-day skew neutral, according to Amberdata — indicating continued concern over potential BTC corrections.

Investors may be cautious that the Fed’s easing was already priced in and that a softening macroeconomic outlook could dampen demand for riskier assets such as bitcoin.

“Following the Fed’s move, some earlier optimism has faded,” Strijers noted. “The market is now waiting for the next catalyst — macro or crypto-specific — to break the current balance between caution and optimism.”

Market Maturity and Strategy

Sidrah Fariq, Deribit’s global head of retail sales and business development, highlighted that the persistent put bias demonstrates growing market maturity.

“BTC options are increasingly behaving like S&P index options — a sign of sophistication, but also caution,” Fariq said.

Traders are also utilizing covered calls, selling call options against their spot BTC holdings to earn premiums. While this approach can cap upside, especially in longer-dated options, it has become popular among BTC, ETH, and XRP traders, contributing to the prevailing put-heavy positioning.