Deribit Exchange Data Shows Divergent Crypto Strategies Amid Rising Volatility
Institutional investors are adopting divergent strategies in the cryptocurrency market as volatility expectations rise. Bitcoin options data from Deribit reveals a surge in directionless trades, with strangles and straddles comprising over 20% of block transactions. These strategies reflect anticipation of sharp price movements, though the direction remains unclear.
Meanwhile, XRP traders appear to be betting on stability, creating a stark contrast in risk appetite between the two assets. Deribit CEO Luuk Strijers notes that both market makers and large portfolio managers are positioning for prolonged uncertainty, with flexible strategies gaining traction.