Bitcoin Ahead of $3B Put Options Expiry, Implying Bearish Sentiment

November 26, 2021

Ether’s Hashrate Hit ATH on Sunday


Bitcoin (BTC) put options, derivatives offering disadvantage protection, keep on becoming pricier, inferring bearish feeling. The value unpredictability might ascend as significant trades, including Deribit, are because of settle month to month options on Friday. Bitcoin was most recently seen exchanging close $58,200, addressing a 1.8% addition on the day. 


The three-month put-call skew, which estimates the expense of puts relative to calls, has turned positive, hit a 6-week high of 3%, as indicated by information given by the cryptocurrency derivatives research firm Skew. The positive number shows that put options are drawing greater costs or demand than calls or bullish bets. A positive skew doesn’t really mean brokers are taking by and large bearish bets rather they could be adding disadvantage protection against long positions in the spot or futures markets. 


<h2>Fear in the Market Due to Bitcoin’s 16% Fall from its ATH</h2>

Regardless, it shows fear in the market, which is justified, given bitcoin’s 16% fall in the wake of hitting a record high of $68,990 on Nov. 10. Most of the open interest is packed in call options at strikes over bitcoin’s record cost. The maximum aggravation, or the value level at which choice purchasers would experience the most loss on expiry, is $58,000. 


Worries that the U.S. Federal Reserve or Fed may chalk out a quicker end to its two-year stimulus program and the resulting strength in the dollar seem to have driven the cryptocurrency lower. The dollar index, which tracks the greenback’s worth against significant fiat monetary forms, has expanded by 3% since the more sweltering than-anticipated U.S. inflation information delivered on November 10.  Information given by Skew shows a total of 51,900 options contracts worth almost $3 billion are expected for expiry on Friday. 


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