Anyone building this type of cellar would be well served by getting Richard Gold's book on the subject. Also cork flooring is a very good option in the cellar. Cheers

You could always do what one distillery did in their aging house. They put in a chiller unit to recover the alcohol that escaped the barrels and was present in the sir in the aging house. Of course, this disturbed the equilibrium and even more alcohol evaporated. The barrels showed higher losses during aging (called the 'angels share'). They did recover the alcohol they lost, but decided it was upsetting the aging process and affecting flavor. Talk to your local AHJ, but they are unlikely to have any real requirements for a wine cellar beyond lighting and structural safety. Cool, dark, damp, and stable are the desired environment.

Yes, you can insulate between your floor joists, but ..... it's not the most cost-effective first insulation project if you're starting from no insulation. The best is the attic, and then make a huge effort to seal up air infiltration throughout the house (caulking, mostly). But you have another problem with your basment (aside from the squirrely foundation issues) and that's moisture vapor rising from the dirt. That you interupt with a good moisture retardant material laid directly on the dirt and well sealed at the foundation. You could also do an air infiltration barrier under the floor (without moisture control); staple it just under your joists it will help prevent cold air getting into your living space. It doesn't insulate, just blocks pressurized air from coming up. But I wouldn't do that until you had blocked moisture vapor at the soil level. The insulate the walls (of the cellar) first recommendation may not really apply to your situation, and anyway I have read here some comments suggesting that it might do some damage. (I have no opinion about that, I'm just passing info I've seen here.) But first, you need to get the bulge/settling problem sorted out and at least know what you must do. After that you can decide whether that project is going to happen soon, or will be put off indefinitely. Then it would be time to decide what else you want to do in that space: Moisture barrier on soil, infiltration barrier under joists and/or insulation between joists. If you chose to do it all, I would square away any electrical or plumbing changes (including insulating any water/drain pipes), insulate between joists, install air infiltration barrier and finally install the moisture barrier on the floor. In addition you need to think through your furnace/boiler arrangements. You may need to insulate the pipes or air ducts, as well. If you create a thermal break between the unheated cellar and the heated living space, you can create problem with your heating plant. I have no advice there as I don't have central heating. If you're just "itching" (LOL) to get some insulation installed, do the attic first, and soon, as the temps up there will get unbelieveable in just a few weeks. Or you could take a wait and see approach and resign yourself to having not the most energy efficient house while you experience a full year's life in the building and can make better choices based on what find. There's good counsel in taking a go-slow approach to old house care. Less of a risk of an inadvertent bad choice. BTW: my personal choice for between the joist insulation is rigid foam sheets. Molly~

I've done it successfully with 2" of closed-cell polyurethane spray foam when there is not a serious water penetration problem and the stonework can be made clean and tight. The code required protection of the foam is not fire-rated; it is only a "thermal barrier" to avoid outgasing and smoke from the foam during a fire and is normally required to be 1/2" gypsum wall board. The use of intumescent paint must be shown to prevent the foam from reaching a certain temperature after 15 minutes of exposure to fire. Don't leave foam plastic insulation exposed; it's a killer. Since you are insulating the basement you obviously intend to use it so you need at least a 3" think concrete slab over a vapor retarder membrane. Insulation under it would be a bonus which is usually only required by code in multi-family dwellings. It's OK to lower the sub-surface as long as the bottom of the foundation wall and central piers are not undermined. If you have water infiltration issues use Worthy's link. The temperature of the earth outside may be increased a few degrees by the unheated uninsulated basement but the only part of the earth that must be protected from freezing is directly below the bottom of the foundation wall but the wall should be deep enough to be protected. Worthy is right about opinions.