TL;DR
- Deribit Insights, using Block Scholes analytics, says crypto derivatives risk appetite fell sharply after a near-20% spot market drop last week.
- The Risk Appetite Index dropped below 0.05, while BTC options skew recovered from much deeper bearish levels.
- The report says the move coincided with the longest spot Bitcoin ETF outflow streak since launch.
- ETH funding rates have traded negative since June 5, pointing to bearish perpetual swap positioning.
Following last week’s price drop, traders of crypto derivatives have become much more cautious. Deribit Insights noted a substantial decrease in the Block Scholes Risk Appetite Index, falling below 0.05, as prices attempted to recover above $60,000.
The latest data from June 11th showed the market was still reacting to a recent drop in price of almost 20%. Although Bitcoin has stabilized above $60,000, trading activity suggests people aren’t quickly jumping back into bets that the price will go much higher.
Risk Appetite Falls After Bitcoin Sell-Off
The Risk Appetite Index, calculated using a specific formula, shows a clear shift in trader behavior: they’re now much more hesitant to take risks. A score below 0.05 indicates significantly lower demand for risky investments compared to times when the market is more optimistic.
Deribit noted that the price decrease happened at the same time as record-breaking outflows from Bitcoin ETFs – meaning more money was leaving than entering these funds. Because ETF flows are now a key indicator of how institutional investors feel about Bitcoin, this continued outflow strengthens concerns signaled by derivatives trading.
In my research, I came across some interesting activity from Strategy Inc. They initially disclosed a small sale of 32 Bitcoin, but then announced a much larger purchase of 1,550 BTC, valued at $103.1 million. This is noteworthy because Strategy Inc.’s Bitcoin moves are often seen as an indicator of how other companies are approaching Bitcoin investment, though the overall derivatives market still seems hesitant.
Options Skew Still Points To Defensive Positioning
Options trading showed a slight improvement, but hasn’t fully bounced back. A recent report indicated that BTC 25-delta risk reversals increased to nearly -9%, a recovery from approximately -19% five days prior when Bitcoin’s price fell below $60,000.
A negative skew indicates investors are prioritizing protecting themselves against potential losses over profiting from gains. While the recent shift from -19% shows some of the initial fear has subsided, the market isn’t yet confidently optimistic.
Bitcoin staying above $60,000 is a positive sign for the short term, but traders who deal in options are still being cautious and protecting their investments, suggesting they want to see more evidence of a sustained price increase before fully committing.
ETH Funding Turns Negative
I’ve been watching the market closely, and a recent report highlighted some concerning signals in Ethereum’s futures trading. Specifically, the funding rates for ETH – basically what you pay or receive to hold a long position – have been negative since June 5th. That suggests most traders are betting against Ethereum right now, creating a bearish outlook in those perpetual swap markets.
From my analysis, just because we’re seeing negative funding rates doesn’t automatically mean the price will continue to fall. In fact, a bounce could even trigger a short squeeze. However, what this *does* tell me is that traders are currently prioritizing holding their bearish (short) positions in Ether – they’re willing to pay more to maintain those bets than they are to hold long positions.
A recent Deribit report highlighted that the current price of Ether (ETH) is 66% lower than its peak in August 2025. This significant drop likely contributes to ongoing caution among investors, even if prices show short-term stability.
What Traders Are Watching Now
The key issue right now is whether the recent stabilization will hold, or if prices will continue to fall. The options market isn’t showing a clear sign of an upcoming price increase just yet.
Bitcoin needs consistent investment into ETFs and more optimistic trading activity to signal renewed confidence. With Ethereum, analysts will be looking to see if current bearish sentiment, reflected in funding rates, starts to improve.
According to recent data from Deribit, cryptocurrency markets are still recovering from the recent price drops, and professional traders are currently acting with caution rather than strong optimism.
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2026-06-12 22:12