Deribit Exchange Data Shows Ether Options With Higher Risk Premium Than Bitcoin as Sentiment Turns Cautious

Ether's derivatives market is showing increased caution among traders, with put options now commanding a higher premium than those for Bitcoin. According to Deribit data, ether's 25-delta risk reversals for August and September contracts are trading at -2% to -7%, indicating strong demand for downside protection.

This shift reverses recent trends where institutional money favored ETH over BTC. Bitcoin's short-term put options are trading at just a 1%-2.5% premium to calls, reflecting relatively subdued bearish sentiment. The divergence suggests traders are reevaluating ETH's near-term outlook despite its position as the second-largest cryptocurrency.

Risk reversals—a strategy combining long puts and short calls—have become a key sentiment indicator in crypto markets, similar to their traditional use in forex. The current pricing implies options traders see greater vulnerability in ETH's position as markets process macroeconomic pressures and evolving blockchain fundamentals.