Bitcoin Options Traders Hedge Risk After Fed Rate Cut - Deribit Data Shows Bearish Skew

Bitcoin traders are increasing downside protection despite recent positive market developments, according to Deribit CEO Luuk Strijers. The Federal Reserve's recent 25 basis point rate cut and SEC's new crypto ETF listing standards have failed to shift the cautious options market sentiment. Deribit's DVOL index, measuring 30-day implied volatility, remains at multi-year lows around 24%. Typically bullish conditions would make call options more expensive, but put options continue trading at premiums across all time frames on the world's largest crypto options exchange. Options skew data from Amberdata shows negative sentiment across 7, 30, 60, and 90-day expirations, with only 180-day skew neutral. This persistent put bias suggests traders anticipate potential BTC price corrections despite macroeconomic stimulus. Market participants appear concerned that Fed easing was already priced in and worsening economic conditions could reduce demand for risk assets like Bitcoin. Covered call strategies, where traders sell calls against spot holdings, are also contributing to the put skew while generating additional income but limiting upside potential. Deribit's global head Sirah Farik notes this behavior resembles traditional S&P index options, indicating market maturity alongside ongoing caution as traders await the next catalyst to break the current stalemate.