Bitcoin options positioning anticipates summer slowdown, analyst says
Bitcoin derivatives traders are bracing for a summer slowdown in market activity, according to an analyst.
Bitcoin BTC +1.62% derivatives traders are positioning themselves for a summer lull in market activity, according to an analyst.
"Summers are usually low volatility periods, and traders are starting to position accordingly based on their bias," Bitfinex Head of Derivatives Jag Kooner told The Block.
According to Kooner, bitcoin implied volatility has dropped significantly since mid-April. This can also be seen in charts from The Block's Data Dashboard , which show the implied volatility of bitcoin at-the-money options falling from over 77% to under 60% for one week, one month and multi-month expires.
The implied volatility of ether ATM options has decreased to a similar extent as that of bitcoin IV since mid-April.
RELATED INDICES
According to Cube.Exchange CEO Bartosz Lipiński, the ebbing of ether IV is a sign that traders expect price swings to calm a bit as they await clarity on ether’s regulatory situation in the U.S. "Typically, when there is uncertainty, traders will go risk-off to cash and sit on the sidelines, and it would not surprise me if a similar situation is occurring with ether," Lipiński told The Block.
The Cube.Exchange CEO added that due to the uncertainty surrounding ether's status in the U.S. — whether it is deemed a security or not — many traders are likely to either remain on the sidelines or explore opportunities elsewhere until the situation is clarified.
However, Lipiński stressed that in the summer, when trading volumes are lower, volatility can increase due to liquidity gaps in the market. "Summer can be a relatively quiet period, it often is in equities markets, but one only needs to look at 2017, DeFi summer, and the last major bull run to see the impacts of lower liquidity on relatively bullish crypto markets," he added.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+
The article analyzes the TGE performance of multiple blockchain projects, evaluating project performance using three dimensions: current price versus all-time high, time span, and liquidity-to-market cap ratio. Projects are then categorized into five grades: S, A, B, C, and D. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC
Russian households have invested 3.7 billion rubles in cryptocurrency derivatives, mainly dominated by a few large players. INTERPOL has listed cryptocurrency fraud as a global threat. Malicious Chrome extensions are stealing Solana funds. The UK has proposed new tax regulations for DeFi. Bitcoin surpasses $91,000. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.

How much is ETH really worth? Hashed provides 10 different valuation methods in one go
After taking a weighted average, the fair price of ETH exceeds $4,700.

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost
People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

