{"id":868554,"date":"2025-08-28T00:12:42","date_gmt":"2025-08-28T05:12:42","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/08\/28\/what-are-savvy-bitcoin-and-ether-traders-preparing-for-as-summer-approaches\/"},"modified":"2025-08-28T00:12:42","modified_gmt":"2025-08-28T05:12:42","slug":"what-are-savvy-bitcoin-and-ether-traders-preparing-for-as-summer-approaches","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/08\/28\/what-are-savvy-bitcoin-and-ether-traders-preparing-for-as-summer-approaches\/","title":{"rendered":"What Are Savvy Bitcoin and Ether Traders Preparing For as Summer Approaches?"},"content":{"rendered":"

Bitcoins <\/p>\n

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Bitcoins Traders are seemingly shoring up their defenses. <\/h2>\n

Updated Jun 23, 2025, 7:11\u202fa.m. <\/span>Published Jun 21, 2025, 4:59\u202fp.m. <\/span><\/p>\n<\/div>\n

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Savvy bitcoin BTC<\/span><\/svg><\/span>$112,930.57<\/span><\/span><\/span><\/a><\/span> and ether {{ETH}} traders are shoring up their defenses as the broader market continues to foresee bullish price action over the summer.<\/p>\n

That’s the message from an options-based strategy called 25-delta risk reversal, which involves the simultaneous purchase of a put option and sale of a call, or vice versa.<\/p>\n

At the time of writing, risk reversals based on Deribit<\/a>-listed bitcoin and ether options indicated that investors were positioning for downside volatility over the summer.<\/p>\n

BTC’s 25-delta risk reversals for June, July, and August tenors were negative, indicating a preference for put options, which offer downside protection, over calls or bullish bets, according to data source Amberdata<\/a>. In ETH’s case, puts were pricier out to the July end expiry.<\/p>\n

Traders typically buy put options to hedge their long positions in the spot and futures markets, protecting themselves from potential price declines.<\/p>\n

“Risk reversals in both BTC and ETH continue to show a preference for downside protection across June and September tenors. This suggests that long holders are actively hedging spot exposure and preparing for potential drawdowns,” Singapore-based QCP Capital said in a market note.<\/p>\n

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BTC: 25-delta risk reversals. (Deribit, Amberdata) <\/figcaption><\/p>\n<\/figure>\n

The nervousness is evident from the over-the-counter liquidity platform Paradigm, where the top five BTC trades for the week include<\/a> a put spread and a bearish risk reversal. Meanwhile, in ETH’s case, a long position in the $2,450 put crossed the tape alongside a short strangle (volatility) trade.<\/p>\n

Bitcoin, the leading cryptocurrency by market value, has spent over 40 days trading back and forth above $100,000, according to CoinDesk data. According to analysts<\/a>, profit-taking by long-term holders and miner selling have counteracted the strong uptake for spot ETFs, leaving prices directionless.<\/p>\n

“Bitcoin has recently tracked sideways, suggesting its current price may be too high for many retail investors. Open interest in BTC options has risen, with a positive and rising 25 delta put-call skew on 30-day contracts, which may imply that market participants are seeking short-term protection through put options,” Coinbase Institutional’s weekly report noted.<\/p>\n

On Friday, BTC closed (UTC) below the 50-day simple moving average (SMA) to trade below the key support for the first time since mid-April. The breakdown may lead to more chart-driven selling, potentially resulting in a drop below $100,000.<\/p>\n

Some observers, however, expect a rally to new record highs. According to market observer Cas Abb\u00e9<\/a>, BTC’s on-balance volume continues to indicate strong buying pressure, suggesting that prices could rise to $130,000-$135,000 by the end of the third quarter.<\/p>\n<\/div>\n

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Omkar Godbole<\/a><\/h5>\n
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Omkar Godbole is a Co-Managing Editor and analyst on CoinDesk’s Markets team. He has been covering crypto options and futures, as well as macro and cross-asset activity, since 2019, leveraging his prior experience in directional and non-directional derivative strategies at brokerage firms. His extensive background also encompasses the FX markets, having served as a fundamental analyst at currency and commodities desks for Mumbai-based brokerages and FXStreet. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.<\/p>\n

Omkar holds a Master’s degree in Finance and a Chartered Market Technician (CMT) designation. <\/p>\n<\/div>\n

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