Bitcoin Options Market Shows Mixed Signals
As Bitcoin maintains its elevated position around $44,000, the options market is showing mixed signals, according to options data tracking website Greeks.Live.
Prevalence of Put Buying
Notably, both Bitcoin and Ethereum block trades have witnessed a prevalence of put buying, with a combined value of $100 million. The dominance of put options suggests a widespread sentiment among institutional players favoring bearish positions.
Sizable Trades Involving Out-of-the-Money Options
Of particular significance are the sizable trades involving out-of-the-money (OTM) options set to expire at the end of January. These trades underscore the inclination of prominent market players to bolster their bearish positions during a period of heightened market sentiment.
Caution Advised in the Options Market
Greeks.Live urged traders to exercise caution, recognizing the potential for downside risks within the options market.
Optimistic Outlook for Bitcoin
Starting from mid-October, Bitcoin has experienced a substantial surge, with its value increasing by more than 60%. This revived optimistic outlook stemmed from the anticipation of a change in the monetary policy of the Federal Reserve and the strong probability of the launch of a much-anticipated spot Bitcoin ETF.
Bullish Bets on Bitcoin Reaching $50,000
Derebit had recently revealed that traders in the options market were increasingly placing bullish bets on Bitcoin reaching $50,000 by January. This aligns with Matrixport’s projection of a $50,000 Bitcoin price towards the end of January 2024 following an SEC approval.
Hot Take: Mixed Signals in Bitcoin Options Market
The Bitcoin options market is displaying mixed signals, with a prevalence of put buying among institutional players. Sizable trades involving out-of-the-money options highlight the inclination of market players to strengthen their bearish positions. While some traders are exercising caution due to potential downside risks, others remain optimistic about Bitcoin’s surge and the possibility of reaching $50,000 by January. The market’s uncertainty reflects the ongoing volatility and unpredictability of the cryptocurrency space.
By
By
By
By
By
By