Bitcoin, Ether, Solana Traders Look for Ways to Protect Against Fall as XRP Stands Out Amid Trump's Disappointing Crypto Plan
According to Block Scholes, short-term put options on BTC, ETH and SOL are trading at a premium to call options.
Posted by: Omkar Godbole | Edited by: Parikshit Mishra Updated: March 7, 2025 14:27 UTC Published: March 7, 2025 11:54 UTC
What you need to know:
- Crypto traders are actively looking for short-term put options on BTC, ETH and SOL.
- XRP options are trending higher on all time frames except one.
- Some experts are hoping that the cryptocurrency summit and payrolls on Friday will support risk assets.
US President Donald Trump signed an executive order on Thursday to create a digital asset reserve that will hold bitcoin (BTC) and altcoins seized in enforcement actions, without making new purchases.
The lack of new acquisitions suggests that the reserve created for now is simply a strategic reserve that will not put pressure on the market. This is causing frustration among traders and prompting them to actively buy short-term put options on BTC, ETH, and SOL, according to Deribit data tracked by Block Scholes. However, sentiment in XRP remains positive.
A put option gives the buyer the right to sell the underlying asset at a predetermined price in the future. In other words, it protects the buyer from potential price drops.
Skewness, which measures the difference in implied volatility (demand) between 25-delta (low strike) puts and higher strike calls, shows that short-term BTC, ETH and SOL puts are trading at a premium to calls, indicating there are concerns about the downside.
“The short-term skew in BTC, ETH, and SOL options once again demonstrates the demand for puts. However, expirations in April and beyond remain bullish for BTC and ETH, while XRP options remain positively skewed across all maturities longer than one week,” Andrew Melville, an analyst at Block Scholes, told CoinDesk, adding that the derivatives largely reflect the market’s disappointment following Trump’s long-awaited Strategic Reserve order.
“BTC and ETH term structures are leveling out from the notable inverted levels that characterized much of March. Volatility levels have dropped sharply by over 10 pips early on as the market prices in some of the uncertainty ahead of Friday’s dual NFP and Crypto Summit,” Melville added.
Crypto Summit and Employment Data in Focus
Traders are now looking forward to the White House crypto summit on Friday, which could bring good news for the market.
“The results could have a significant impact on the regulatory environment and institutional sentiment around digital assets, shifting toward clarity on token classification, tax incentives, and reduced enforcement, potentially removing barriers for banks and funds,” Ryan Lee, chief analyst at Bitget Research, said in an email.
“Key market signals to watch for include specific securities law proposals, reserve structure, leniency from figures like the SEC's Mark Uyeda, and hints of legislative support – any of which could trigger a bullish surge or, if the situation remains unclear, cause volatility,” Lee added.
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