Bitcoin and Ethereum traders prepare for August slump as put options dominate

Crypto traders are preparing for imaginable terms declines successful Bitcoin (BTC) and Ethereum (ETH) this August, with options information from Derive.xyz showing a wide tilt toward bearish positioning.

Bitcoin bearish sentiment

According to information shared with CryptoSlate, unfastened involvement successful Bitcoin enactment options with an Aug. 29 expiry day is astir 5 times higher than telephone options.

Investors typically bargain telephone options erstwhile they expect the asset’s terms to increase. Conversely, they bargain enactment options erstwhile they expect a diminution successful the asset’s value.

Notably, astir 50% of that Derive’s enactment enactment is concentrated astir the $95,000 strike, portion different 25% is divided betwixt $80,000 and $100,000.

Further confirmation comes from data from Deribit, a starring centralized derivatives exchange, wherever enactment options astatine the $110,000 and $95,000 onslaught prices relationship for implicit $2.8 cardinal successful unfastened interest.

This suggests traders are progressively betting connected a determination beneath the six-figure mark.

Moreover, options skew, a measurement comparing the outgo of puts to calls, has shifted from +2% to -2% successful the past month, reflecting a increasing appetite for downside protection.

This displacement successful sentiment aligns with probability models that spot an 18% accidental connected BTC revisiting $100,000 earlier the extremity of the month.

Ethereum volatility rises

Ethereum is besides experiencing an summation successful bearish sentiment, though to a lesser grade than Bitcoin.

Derive information shows that for the Aug. 29 expiry, enactment options outnumber calls by conscionable implicit 10%.

The highest attraction of enactment enactment is astir the $3,200, $3,000, and $2,200 onslaught levels, suggesting traders are bracing for thing from mild declines to much important drops successful Ethereum’s price.

Moreover, ETH’s 30-day skew has dropped from +6% to -2%, suggesting a akin signifier of increasing involvement successful downside protection.

Meanwhile, Ethereum’s monthly volatility remains higher, with an expected volatility of 65%, compared to Bitcoin’s 35%. This suggests Ethereum could acquisition a bumpier thrust than Bitcoin successful the weeks ahead.

Considering this, crypto traders connected Derive person placed a 25% accidental of ETH falling beneath $3,000 this month. However, with caller terms rebounds, the likelihood of a adjacent above $4,000 person doubled to 30% implicit the past week.

The station Bitcoin and Ethereum traders hole for August slump arsenic enactment options dominate appeared archetypal connected CryptoSlate.