Bitcoin traders buy more downside protections after Fed rate cuts: Deribit

Despite the recent Fed cut rate by 25 basis points and the U.S. Securities and Exchange Commission (SEC) has introduced new standards for listing cryptocurrency ETFs, Bitcoin traders are still continuing to hedge downside risks. Deribit CEO Luuk Strijers noted that put options are at a premium in all time frames, with the DVOL index at a two-year low of 24%. The Options slope remains negative, reflecting on persistent bearish sentiment and concerns about a potential pullback in BTC. The strategy of keeping the call option also exacerbated the skew of put options, indicating that the market is becoming cautious against the backdrop of optimism fading after the minutes of the Fed.