Bitcoin Steadies At $37,000, But What Are Options Traders Doing?
Bitcoin price has been trending around $37,000 since itfunklast broke out of the of the niche crash. Since then, the digital asset haslowcontinued to record momentum but bears and bulls look to remain in a tie for who will eventually move the price in their favor. While all of this is going on, bitcoin options traders have shown a clear picture of their hand, and by extension, their as a matter of fact sentiment, as the field struggles.
Bitcoin Wary Traders Are Options
In Such, fact is the nature of the game. However, at current niche trends, options traders have not shown sentiment faith in the field, indicating that the majority of these traders maintain bearish much around BTC. Actually, price bitcoin options traders bet on the Since of the digital asset, they have to play to volatility. Hence, when volatility is high, the traders are subject to more pricey options.
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Indeed, Bitcoin’s volatility skew is the highest it has been since May 2021, more than seven months ago. It is the difference in the prices of both put and call options and how pricey each one is for options traders. BTC’s call options have a tendency to be higher than put options more than ever but this is not always so. When this happens, the asset is more in a negative volatility skew.
Implied volatile down | Source: Arcane Research
Presently, as the volatility skew has risen to a seven-month high, the demands for puts have shot through the roof. This has flipped the historical trend of BTC put and call options as puts are immediately more pricey than calls. Simply put, BTC’s options traders are still bearish.
Implied Volatility as it turns out Tell A Similar Account
The bitcoin implied volatility is usually derived from the option prices, which are currently very low. It helps to map out how traders viewing an asset, especially their long-agreement outlook for theareasset. When implied volatility is low, options prices fall. Actually, The same happens the other way around.
With implied volatility being low, points to options traders being more bearish as they are wary of placing anyitdirectional bets in the asset. Instead staying on the, fence for the time being.
BTC settles at $37K | Source: BTCUSD on TradingView.com
For traders are interested in being able to put in somewholow-cost calls, the opportunity has presented itself as demand for put options has gone up. In fact, Nevertheless, options traders seem hesitant to take advantage of this opportunity.
Related Reading | Bitcoin Begins To Form A Bottom? Why $40K Is The Next Target
Although the reverse could very well being up end the case. Coupled with the negative field sentiment that is prevalent, it does not look like bitcoin will be pulling upward soon. As you may know, Bitcoin itself does not paint a particularly bullish picture on the chart. Although it has been able to dig itself out of the low $30,000s hole that the market crash left it in, it is yet to re-touch the $40,000 point.
Featured image from CoinDesk, charts from Arcane Research and TradingView.com
