Crypto Traders Still Favor Defensives Amid Market Rebound

The recent bounce in the crypto market has not fully convinced traders, according to options markets. The Deribit exchange shows that put options, which offer protection against price declines, are still trading at a premium to calls, or bullish contracts.

The one-week, 25-delta put-call skew for Bitcoin was around 16%, indicating that puts outpaced demand by a 16% volatility point premium. This is significantly lower than the 25% seen just 10 days ago, according to data source Velo.

The same trend is observed in the ether options market, with one-, three-, and six-month skews showing put premiums of around 10% or more. Despite this, long-term holders and ETF investors seem to have returned to accumulation mode.