Bitcoin News Today: Bitcoin Bearish Bets Hit 5x Bullish as Ethereum Options Skew Turns Negative

Crypto traders are increasingly hedging their positions as bearish bets against Bitcoin and Ethereum reach significant levels, indicating a shift toward risk aversion in the derivatives market. According to Derive.xyz, a derivatives analytics platform, bearish options activity has surged, particularly for Bitcoin and Ethereum. On contracts expiring at the end of August, Bitcoin’s bearish positions are nearly five times greater than bullish ones, with key strike levels at $80,000, $95,000, and $100,000 attracting the most attention. This suggests that many traders are preparing for a potential pullback below the $100,000 threshold before the month’s end [1].

Ethereum is also experiencing similar bearish pressure. Put options now dominate trade volume, with a 10% premium over call options, highlighting growing demand for downside protection. Popular put strike levels are clustered around $3,200, $3,000, and $2,200. As of August 6, Ethereum had dropped over 4% to approximately $3,624, while Bitcoin had fallen nearly 3% to $114,075 [1].

The broader derivatives market is also showing signs of stress. Option skew—a metric that reflects the cost of downside insurance—has turned sharply negative for both assets. Bitcoin’s skew has fallen from +2 to -2, while Ethereum’s has dropped from +6 to -2 over the past few weeks. Implied volatility (IV) is also rising, with Ethereum’s monthly IV now at 65%, significantly higher than Bitcoin’s 35%. The volatility spread between the two assets has widened to 30 points, up from 24 at the start of June [1].

Despite the bearish positioning, Derive’s models indicate that the market has not entirely lost optimism. Ethereum has a 30% chance of breaking above $4,000 by the end of August, double the probability from just a week earlier. Meanwhile, the likelihood of falling below $3,000 remains at 25%. For Bitcoin, there is still an 18% probability it will test $100,000 again by late August [1].

Other indicators reinforce the cautious market sentiment. A leveraged bearish strategy ETF has risen 19%, reflecting a pessimistic outlook for Bitcoin and MicroStrategy (MSTR), with a net inflow of $16.3 million reported in late July. Bitcoin’s net taker volume remains bearish, with open interest and funding flow metrics pointing to a fragile market structure [2].

While the market remains above key levels, the growing bearish bias does not necessarily signal an imminent price crash. “Bitcoin options signal growing risk aversion, but there is no clear indication of an imminent price crash,” one report noted [3].

In summary, the surge in bearish options activity, combined with shifting skew metrics and rising implied volatility, suggests a market in transition. Traders are increasingly focused on downside protection, even as some models continue to project limited upside potential. As August progresses, the market is likely to remain in a state of cautious observation, with key price levels in both Bitcoin and Ethereum under close scrutiny.

Source:

[1] Coindoo - https://coindoo.com/crypto-traders-grow-cautious-as-bets-against-bitcoin-and-ethereum-surge/

[2] CoinDesk - https://www.coindesk.com/markets/2025/08/06/leveraged-bearish-strategy-etf-surges-19-signals-dour-outlook-for-mstr-and-bitcoin

[3] Cointelegraph - https://cointelegraph.com/news/bitcoin-btc-options-point-to-growing-cautious-110k-ahead