Options traders target $80K by May, Skew suggests just 6% chance they're right
Options traders are betting big that BTC will be above $80,000 on April 30, but analytics provider Skew thinks there is a 94% chance their positions will be worthless. With Coinbase’s highly anticipated direct listing IPO expected to take place next month, options traders appear to be betting that Bitcoin will once again soar to new all-time highs in the coming weeks.On March 24, the founders of crypto analytics firm Glassnode tweeted data suggesting that options traders on peer-to-peer crypto derivatives exchange, Deribit, are loading up on contracts set to expire on April 30 with a....
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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,....
Data from Bitcoin options shows that crypto traders are currently selling out and uncertain about entering directional bets on the coin’s future transactions. This is the highest occurrence of this kind of investors’ sentiments on the coin since last year May, when more than 50% of Bitcoin’s value declined. Arcane Research’s Report On Bitcoin Crypto market analysis company Arcane Research had recently published a report on the performance of Bitcoin. Their research highlighted that the coin experienced low volatility of over 70%, bolstering that this is the first....
Retail seems to be causing Bitcoin futures markets' excessive leverage, but pro traders remain neutral. Bitcoin (BTC) has breached the $50,000 level on Feb. 16. But while failing to cleanly break the psychological barrier, it undoubtedly displayed the potential for even higher valuations.Meanwhile, futures and options indicators are misaligned, signaling excessive buyers' leverage, while options markets remain calm. After analyzing both markets, one might theorize what has caused this apparent incongruence.Options skew remained neutral-to-positiveWhen analyzing options, the 25% delta skew....
Following the return above $100,000 in the previous week, Bitcoin has fought well to maintain its hold above the six-figure mark in recent days. While the flagship cryptocurrency retains its six-figure valuation, there’s still some momentum lacking in its price action, as spotlighted by last week’s performance. According to recent analysis, the sluggishness and apparent indecision in the BTC market can be attributed to significant selling pressure in the derivatives market. Interestingly, the latest on-chain data shows that the Bitcoin price still has room for additional growth. Options....
Bears took control of BTC price after options markets flashed bearish signals, but should traders be worried? Crypto exchange Deribit is the absolute leader in the Bitcoin (BTC) options markets, and on Nov. 24, the 25% delta skew indicator signaled that sentiment among pro traders was becoming “more bearish overall.”We've seen 25-Delta put skew moved from around 0% to almost 10-15% pending time to expiry since beginning of Nov implying a more bearish overall sentiment. Premiums for downward protection are getting more expensive. In the short term, this expiry has a Max pain of $58k.....