You are missing out on Bitcoin opportunities on CME!
Have you considered trading Bitcoin options on CME for potential short-term gains? Learn why institutional investors prefer CME over crypto exchanges for BTC derivatives trading.
CF Benchmarks outlook on Bitcoin rally
Explore how CF Benchmarks analyzes Bitcoin options trading on CME to gauge the likelihood of a short-term BTC price rally.
- CF Benchmarks, a Kraken group company, recently launched the CF Bitcoin Volatility Index to measure implied volatility in BTC price options at CME.
- Implied volatility for out-of-the-money put options is currently higher than call options after the release of inflation data.
- Investors are paying a premium for protective put options, indicating a bearish sentiment in the market.
Impact of CME options on Bitcoin price directions
Understand how the higher implied volatility for put options signals a predominance of bearish speculators and reflects investors hedging against price declines.
- OTM put options are used to speculate on or protect against price drops, while call options guard against price increases.
- The measure of implied volatility estimates future asset volatility based on current options prices.
- Institutional investors on CME seem cautious about a short-term BTC rally, with a preference for put options over call options.
The evolving short-term outlook
Examine why the current short-term market sentiment may change to a more bullish outlook in the medium-short term.
- Short term in crypto typically refers to a few days, but analysis can shift to a few weeks for long-term projections.
- Market conditions could quickly change due to high-speed trading algorithms reacting to evolving crypto market trends.
- A return to $70,000 for Bitcoin is possible, but transformative market shifts may be necessary to trigger a new rally.
Insights from CF Benchmarks
Discover how CF Benchmarks’ three-dimensional volatility surface chart illustrates institutional sentiment towards Bitcoin options in different timeframes.
- Institutional sentiment appears positive in the medium term, potentially shifting towards a bullish outlook from a slightly negative short-term perspective.
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