Options Market Signals: Bitcoin Traders Stay Defensive
Despite Powell’s dovish pivot, Bitcoin option markets continue to flash a warning sign.
Data from Deribit, tracked by Amberdata, reveals that 25-delta risk reversals remain in negative territory through the December expiry.
For context: risk reversals compare the pricing of calls versus puts. A positive value signals bullish sentiment (calls more expensive), while a negative value points to bearish hedging (puts more expensive).
The current setup shows that put options — essentially insurance against price declines — trade at a premium over calls.
In plain English: institutional traders are still paying up to protect themselves from downside risk.
This lingering risk aversion suggests that, even if monetary policy appears to shift dovishly, the crypto market isn’t buying into a smooth rally narrative.
Instead, traders are bracing for potential volatility spikes and a possible pullback in BTC prices.
Bitcoin Reverses Powell Spike With a Flash Crash as Options Market Signals Jitters Ahead