Traders Stay Calm as Bitcoin and Ether Take a Hit

Bitcoin (BTC) and ether (ETH) have experienced downward pressure since last Monday's uptrend stalled. Despite this, traders are not yet panicking, with no signs of a surge in demand for crash insurance.

Data from Skew shows that the spread between downside puts and upside calls has narrowed, but remains relatively low compared to historical levels. This suggests that traders are still pricing in low volatility, rather than positioning themselves for a potential crash.

Laevitas notes that the 1.98v week-over-week move on BTC's 7d skew is at the 92nd percentile of its 52-week range against a -4.41v median, indicating that downside remains historically cheap even after calls have given up their premium.

For ether, calls are still more expensive than puts, but the premium has narrowed from a week ago, suggesting that bullish sentiment has cooled. Meanwhile, 10x Research notes an uptick in demand for puts, but questions whether this is a short-term hedge or the start of a regime shift.