Deribit Exchange Data Shows Savvy Bitcoin and Ether Traders Hedging Against Summer Volatility

Experienced Bitcoin and Ether traders are preparing for potential downside volatility as summer approaches, even amid broader market optimism. The 25-delta risk reversal strategy—which involves buying puts while selling calls—shows a clear preference for downside protection in BTC and ETH options. Negative risk reversals for June, July, and August tenors highlight increased demand for puts, indicating cautious hedging among long-term holders.

Data from Deribit-listed options reveals that puts are more expensive than calls, especially for ETH through July. QCP Capital observes this trend reflects active hedging against possible market declines. Paradigm's OTC platform reports bearish BTC trades, such as put spreads, dominating weekly activity. This market nervousness contrasts with bullish price expectations, creating a complex scenario for crypto derivatives traders.