10x Derivatives Edge: BTC & ETH Volatility/Options Analysis

Signals That Move Markets

Author

10x Research
October 23, 2025

Traders are bracing for short-term turbulence across Bitcoin and Ethereum, with option markets signaling caution but not yet capitulation. Volatility curves have steepened at the front end, indicating a demand for near-term protection, even as longer-term expectations remain anchored. Skews have flipped sharply bearish after October’s liquidation, highlighting an uptick in put demand and hedging activity. While Bitcoin’s implied volatility still trades above realized—rewarding option sellers—Ethereum’s has dropped below realized, making its options cheap to buy. Flows confirm this divergence: Bitcoin traders are selling calls for income, while Ethereum traders are defensively buying puts. Against this backdrop, 10x Research sees opportunity in structured trades—shorting rich front-end BTC volatility and buying longer-dated ETH exposure to capture time decay and potential volatility normalization.

Bitcoin: Term structure

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