Bitcoin traders are seeking downside protection amidst heightened market caution, even after positive signals such as the U.S. Federal Reserve's 25 basis point rate cut. Deribit's CEO noted that despite bullish trends, traders are predominantly buying put options, indicating bearish sentiment. The SEC's introduction of a new listing standard for crypto ETFs has also influenced market sentiment but has not reversed the trend towards protective trading. The implied volatility measured by Deribit's DVOL index remains low at around 24%, the lowest in two years. Options skew indicates significant demand for puts, with puts trading at a premium across various time frames, illustrating the persistent concerns of a potential BTC correction. As traders mature in their strategies, many are employing covered calls to generate income while limiting upside potential. Strijers and Farik from Deribit highlight that the current market condition reflects a wait-and-see approach from investors, balancing optimism with caution in a fluctuating economic landscape.

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