Bitcoin traders are exhibiting a mixed reaction in the derivatives market following the Jackson Hole economic symposium on Friday, balancing optimism for future gains with caution about the pace of any potential rally.

The market has seen increased buying of call spreads—a sign that traders are betting on further price increases, QCP Capital wrote in its most recent investor note.

However, there has also been significant selling of Bitcoin call options with a strike price of $100,000, particularly for contracts extending to March 2025, data from BasedMoney shows. 

This suggests that while sentiment remains broadly bullish, traders are not anticipating a sharp or immediate price surge, QCP said.

Despite recent gains in Bitcoin and Ethereum, volatility indicators show a shift toward put options, reflecting traders’ concerns about potential downside risks through October.

Implied volatility, a key measure in options trading that estimates future price movements, is skewed toward puts, indicating more significant concern over potential price drops than optimism for price increases.

In simple terms, even though Bitcoin and Ethereum have been rising, more traders are hedging against a possible decline by purchasing put options.

A put option is a type of financial contract that gives the holder the right to sell an asset at a specific price within a certain period. When traders buy put options, it typically indicates they are concerned that prices might drop and are looking to protect themselves.

It follows the prevailing bullish sentiment after U.S. Federal Reserve Chairman Jerome Powell hinted the central bank could begin cutting interest rates as soon as next month, with Bitcoin responding with a price rise.

The recent price rise has not been accompanied by a corresponding increase in volatility, signaling caution among traders, QCP said.

With short-term volatility declining, Bitcoin is expected to remain within the $62,000 to $67,000 range until at least October, it added.

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