Crypto Options Surge: BTC & ETH Put Volume Spikes
Derive.xyz reports a surge in crypto options trading as investors flock to put options to hedge downside risk after last month’s rally cooled. For the August 29 expiry, BTC put open interest tops calls by nearly 5×, with half at the $95k strike. ETH put open interest exceeds calls by over 10%, concentrated at $3,200, $3,000 and $2,200 strikes. Spot BTC and ETH have slid 3.4% and 5.4% week-on-week to $114,484 and $3,654. The 30-day skew for both flipped to –2%, signalling demand for downside protection. Implied volatility is 35% for BTC versus 65% for ETH. Derive’s probability model assigns a 25% chance ETH falls below $3,000 and an 18% chance BTC retests $100,000 by month-end. These crypto options strategies underscore trader caution amid Fed uncertainty.
Bearish
The surge in crypto options put volumes for BTC and ETH indicates a defensive, bearish bias as traders hedge against potential price falls. High put open interest relative to calls, negative skew flips, and elevated implied volatility all point to expectations of near-term downside risk. In the short term, heavy put buying may dampen price momentum as market participants prioritize protection. Over the longer term, however, this protective positioning could absorb volatility and prevent sharp sell-offs, leading to a more stable trading environment once risk concerns subside.