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Crypto Score 35 Neutral

Bitcoin Hedging Outpaces Ether as Traders Signal Heightened Caution

Apr 01, 2026 11:15 UTC
BTC-USD, ETH-USD
Short term

Traders are hedging Bitcoin more aggressively than Ether, indicating stronger downside concerns for BTC. This shift in risk perception could influence trading strategies but is unlikely to drive broad market movements.

  • Traders are hedging Bitcoin more aggressively than Ether, indicating stronger downside concerns for BTC.
  • Put options on Bitcoin are more expensive than those on Ether across all time frames.
  • The risk reversal metric is negative for both Bitcoin and Ether, signaling higher costs for downside protection.
  • Ether has outperformed Bitcoin in the past 24 hours, rising 5%.
  • A breakout above Bitcoin's 50-day moving average of $68,680 could strengthen bullish momentum.
  • Traditional market indicators suggest a risk-on sentiment with falling Treasury yields and rising futures.

As the new quarter begins, the crypto market is showing a notable trend: traders are hedging Bitcoin more aggressively than Ether. This is evident in the options market, where downside protection for Bitcoin is more expensive than for Ether across all time frames. Options, which act as a form of insurance, allow traders to buy protection against price drops (puts) or bet on price increases (calls). Currently, a key metric known as a risk reversal is negative for both Bitcoin and Ether, indicating that puts are more costly than calls. This suggests lingering fears of a price decline, a common occurrence given the prolonged downtrend since October. However, the caution is more pronounced for Bitcoin. Put options on Bitcoin are significantly more expensive than those on Ether, especially for longer-dated contracts. For instance, options expiring next March show a steeper premium for Bitcoin's downside protection compared to Ether. This implies that traders are more concerned about Bitcoin's potential for a price drop. Meanwhile, Ether has outperformed Bitcoin in the past 24 hours, rising 5% and outpacing other major tokens. Analysts note that a breakout above Bitcoin's 50-day moving average of $68,680 could bolster bullish momentum. In traditional markets, the 10-year U.S. Treasury yield has fallen for four consecutive days, while futures for the Nasdaq and S&P 500 have risen nearly 0.5%, signaling a risk-on sentiment. These developments highlight a nuanced shift in market dynamics, with traders adjusting their strategies based on perceived risks and opportunities.

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