Bitcoin’s Sudden Volatility Jump Signals Options Could Be Calling The Shots—A...
Bitcoin’s recent price swings have picked up pace, and market watchers say that option markets may again be calling the shots. Over the past two months volatility has climbed, shifting how traders and investors respond to big moves in BTC. Related Reading: $2 Billion Gone In Minutes: Bitcoin Slide Shakes Crypto World Volatility Numbers Reignite Focus According to Jeff Park, implied volatility had stayed below 80% since US Bitcoin ETFs were approved, But it is now creeping back toward about 60%. That rise matters because option flows can amplify moves — both up and down — when traders....
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According to on-chain metrics, BNB climbed to a record high of $1,111 and traded around $1,110 after an 8% jump in the past 24 hours. Related Reading: Fast And Furious: XRP’s Next Rally Predicted To Shock Markets Data shows nearly $400 million in positions were liquidated across the BNB market in the last day, with close to $270 million of that coming from short positions and $127 million from long positions. Liquidations And Short Squeeze The heavy liquidation figure points to a sharp and fast move that forced leveraged traders out of the market. Short sellers bore the brunt, which helps....
Bitcoin price has been trending around $37,000 since it last broke out of the funk of the market crash. Since then, the digital asset has continued to record low 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 sentiment, as the market struggles. Bitcoin Options Traders Are Wary Since bitcoin options traders bet on the price of the digital asset, they have to play to volatility. Hence, when volatility is high,....
The open interest on bearish put options has risen to $2.52 billion as traders look for protection against a BTC price drop to the $40,000 to $50,000 range. Bitcoin (BTC) has been trying to break the $60,000 resistance for the past 23 days. Generally, investors don’t seem too worried about this as they consider it a healthy consolidation period, and even recent analysis from JPMorgan Chase estimates that BTC price will reach $130,000. Even as most investors expect Bitcoin price to rise above $100,000, derivatives data shows $2.52 billion worth of ultra-bearish options from the $40,000 to....
Bitcoin’s six-week collapse has erased over $40,000 from its price, yet—according to Jeff Park, CIO at ProCap BTC and Bitwise advisor—the more important story may lie not in spot markets but in volatility. In his November 22 Substack post “Where Does Bitcoin Go From Here?”, Park argues that “market structure has flipped sharply negative,” citing ETF outflows, the Coinbase discount, structural selling, and liquidations of over-levered longs. But beneath that surface stress, he says, “something in the structure of Bitcoin’s volatility markets is stirring again—something that looks more like....
The bitcoin market’s volatility is a well-cited aspect by naysayers—but what causes it?