As summer 2025 draws near, seasoned Bitcoin and Ether traders are gearing up for a potentially turbulent season. Their strategy? A tactical embrace of 25-delta risk reversals, pointing to a summer where downside protection seems more appealing than bullish gambits.
Hedging Against Summer Swells
Traders are increasingly leaning toward put options, as evidenced by the negative risk reversals on Deribit-listed Bitcoin and Ether options for June, July, and August. Simply put, these investors are buying insurance against price drops, a move that reflects a calculated caution in an otherwise optimistic market. According to Amberdata, the preference for puts signals that traders are bracing for potential market dips, even as they maintain a watchful eye on the unfolding summer scene. This cautious stance is further underscored by the impending expiration of over $4 billion in options, as detailed in Traders Brace For Impact As Over $4 Billion in Bitcoin and Ethereum Options Expire.
QCP Capital, based in Singapore, noted, “Risk reversals in both BTC and ETH continue to show a preference for downside protection across June and September tenors. This suggests that long holders are actively hedging spot exposure and preparing for potential drawdowns.” It’s a sentiment echoed in the trading patterns on Paradigm, where the week’s top BTC trades include not just put spreads but also bearish risk reversals. Ether traders, too, are following suit, with significant activity around the $2,450 put—underscoring a shared sentiment of cautious anticipation.
Market Movements: A Mixed Bag
Bitcoin, the reigning giant of the cryptocurrency universe, has been dancing around the $100,000 mark for over 40 days, according to CoinDesk data. This seesawing around a psychological milestone has left prices seemingly directionless, a situation compounded by profit-taking from long-term holders and miner sell-offs. According to a Coinbase Institutional report, “Bitcoin has recently tracked sideways, suggesting its current price may be too high for many retail investors.” This aligns with the insights from Chart of the Week: Bitcoin’s Summer Lull Still Offers ‘Inexpensive’ Trading Opportunity, which highlights the potential for strategic trades during this period of stagnation.
The report adds that open interest in BTC options has seen an uptick, with a positive and rising 25 delta put-call skew on 30-day contracts. This suggests that many market participants are seeking short-term protection through put options, hoping to weather any potential storms without suffering significant losses. The recent dip below the 50-day simple moving average (SMA) for BTC marks the first such breach since mid-April, hinting at more chart-driven selling that could push prices below the $100,000 threshold.
Navigating Uncertainty and Prospect
Despite the market’s cautious tone, some analysts remain bullish. Market observer Cas Abbé points to Bitcoin’s on-balance volume, which continues to show robust buying pressure. Abbé believes this could propel prices to new heights—possibly reaching $130,000 to $135,000 by the end of the third quarter. It’s a perspective that offers a glimmer of hope amid the prevailing hedge-heavy strategies.
Yet, the market’s current landscape raises questions about whether this summer will bring a rally or further dips. With traders hedging their bets and analysts divided, the coming months promise a complex dance between optimism and caution. As always in the volatile world of cryptocurrency, the only certainty is uncertainty itself.
Ah, the thrill of the crypto rollercoaster—one never quite knows what the next turn might bring.
Source
This article is based on: What Are Savvy Bitcoin and Ether Traders Preparing For as Summer Approaches?
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
