Bitcoin News Today: Ether Options Signal 2%–7% Higher Downside Risk vs Bitcoin

Market sentiment has increasingly turned against ether, as options traders are now paying higher premiums to hedge against potential downside risks compared to those for bitcoin. This shift in risk perception is evident in the derivatives market, where short-tenor options on ether show a 2% to 7% premium over equivalent bitcoin options. The elevated cost of downside insurance for ETH signals growing uncertainty and caution among traders toward the second-largest cryptocurrency [1][2].

The trend suggests that ether is being perceived as more volatile or less secure in the short term relative to bitcoin. Deribit data reflects this, showing that market participants are allocating more capital to protect against ether’s potential decline [3]. Such positioning is typically driven by macroeconomic factors, regulatory developments, or underlying asset-specific concerns. While no direct regulatory action has been cited as the cause, the broader crypto market has been under pressure as the U.S. dollar remains strong and investors recalibrate their risk exposure [4].

The increased cost of ether downside protection contrasts with bitcoin’s relatively more stable positioning in options markets. This divergence underscores a growing disparity in how investors are valuing the risks associated with the two leading cryptocurrencies. The situation may further evolve depending on broader market dynamics, including potential policy developments or macroeconomic shifts [1].

Ether, the native token of the Ethereum blockchain, surged 48% in July, reaching a seven-month high of $3,941 and outperforming BTC’s 8% gain by a wide margin. Most of the advance, however, occurred in the first half of the month, with the rally losing steam on concerns it stemmed purely from corporate adoption and lacked support from on-chain activity [1].

According to data from Amberdata, ether’s 25-delta risk reversals for options expiring in August and September were trading at -2% to -7%. This means put options, which provide protection against drops in price, carry a 2% to 7% premium over call options, reflecting an apparent concern about a potential downside risk [2]. In comparison, bitcoin’s short-term put options traded at 1%-2.5% premium to calls, suggesting relatively restrained downside fears [4].

A put option gives the purchaser the right to sell the underlying asset at a predetermined price on or before a specified future date. A put buyer is implicitly bearish on the market, seeking to hedge spot market holdings or profit from a price decline. A call buyer is implicitly bullish on the market [1]. The 25-delta risk reversal is an options strategy that comprises a long put position and a short call option (or vice versa) with a 25% delta, meaning the strike price for both options is relatively far from the underlying asset’s market rate [4].

Risk reversals are widely tracked in the FX markets to gauge sentiment across time frames. Positive values represent bullish sentiment, while negative values suggest the reverse [1]. Ether was recently trading at $3,600, down more than 6% over 24 hours, while bitcoin had lost 3% to $114,380 [1].

The 2% to 7% premium for ether puts over calls highlights a bearish positioning in the derivatives market, indicating that traders are pricing in a higher probability of a decline in ETH than in BTC. This development could influence broader market sentiment and potentially affect the strategic allocations of institutional and retail investors in the cryptocurrency space [2].

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[1] CoinDesk, [https://www.coindesk.com/markets/2025/08/01/are-traders-done-with-ether-options-market-now-prices-higher-risk-for-eth-than-btc](https://www.coindesk.com/markets/2025/08/01/are-traders-done-with-ether-options-market-now-prices-higher-risk-for-eth-than-btc)

[2] Yahoo Finance, [https://finance.yahoo.com/news/traders-done-ether-options-market-092049162.html](https://finance.yahoo.com/news/traders-done-ether-options-market-092049162.html)

[3] Stocktwits, [https://stocktwits.com/symbol/ETH.X](https://stocktwits.com/symbol/ETH.X)

[4] CoinDesk, [https://www.coindesk.com/markets/2025/08/01/bitcoin-ether-start-august-on-a-shaky-note-as-dollar-index-tops-100-yen-hits-4-month-low-ahead-of-nonfarm-payrolls](https://www.coindesk.com/markets/2025/08/01/bitcoin-ether-start-august-on-a-shaky-note-as-dollar-index-tops-100-yen-hits-4-month-low-ahead-of-nonfarm-payrolls)