Extraordinary Data Observed in Bitcoin Options! What Does It Mean for BTC?
Bitcoin options traders have witnessed remarkable data that suggests a bearish market sentiment. ETC Group analysts have reported that the bid-ask ratio for open positions in Bitcoin options has exceeded 1, indicating a growing interest in selling positions among investors.
This surge in selling positions can be attributed to the recent correction in BTC, as option traders seek protection against further declines in its price. The buy-sell ratio for Bitcoin option open positions surpassed 1 just before the weekly expiration date on July 12, signaling a bearish market.
When the put-call ratio for Bitcoin options open interest exceeds 1, it implies that there are significantly more put options being traded than call options. This indicates that investors are actively seeking greater protection against potential price drops and are hedging against such declines.
Analysts have noted that Deribit data shows the largest option open positions expiring on Friday were at $58,000, with a significant concentration of put options at the maturity prices of $52,000 and $48,000. This focus on put options suggests that investors anticipate further declines in BTC and the overall market.
At the time of writing, Bitcoin is trading at $57,189. Please note that this article does not constitute investment advice.
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