Deribit Exchange Reports Bitcoin Traders Still Hedging Downside Post-Fed Rate Cut

Bitcoin traders continue to prioritize downside protection despite the Federal Reserve's recent 25 basis point rate cut, according to Deribit CEO Luuk Strijers. The market remains cautious even with favorable macroeconomic signals, including the SEC's streamlined crypto ETF approval process.

Deribit's DVOL index, which tracks 30-day implied volatility, remains near 24%—a two-year low. Typically, such conditions WOULD fuel bullish sentiment, pushing call option premiums above puts. However, put options maintain their premium across all time frames on the world's largest crypto options platform.

'Skew remains flat to negative,' Strijers noted, emphasizing sustained demand for puts as hedge instruments. This anomaly suggests professional traders are preparing for potential declines while call overwriting limits upside potential.