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

Bitcoin and ether traders are preparing for potential downside volatility as summer approaches, despite overall market optimism. The 25-delta risk reversal strategy—a key indicator of market sentiment—reveals a preference for put options over calls, indicating defensive positioning.

Deribit-listed options show negative risk reversals for BTC across June, July, and August tenors, with ETH following a similar pattern through July. This skew toward downside protection suggests long holders are actively hedging their spot exposure. "Risk reversals in both assets indicate traders are bracing for potential declines," noted QCP Capital in a Singapore-based market analysis.

Paradigm's OTC liquidity data supports this trend, with bearish structures like put spreads dominating recent BTC trades. Ether markets reflect the same caution, showing heightened sensitivity to possible corrections even as bullish narratives continue.