According to Deribit data, the ratio of put options to call options for Bitcoin options contracts expiring this Friday has risen to over 1, signaling bearish sentiment in the market. A ratio above 1 means that the number of open put options significantly outweighs the number of open call options. This indicates that more investors are betting on or hedging against a price decline rather than an increase.
Deribit data shows that the largest cluster of open contracts in options expiring this Friday is put options with a strike price of $58,000. Additionally, there are also significant amounts of put options with strike prices of $52,000 and $48,000.
Bitcoin options traders have increased their bets on further declines. In a report on Monday, asset management firm ETC Group stated that implied volatility for Bitcoin options has increased during the recent price decline. The implied volatility for at-the-money Bitcoin options, expiring in one month, has risen to 50.5%. The term structure of volatility has also inverted, with short-term options having significantly higher implied volatility than long-term options. This reflects the market’s heightened concern and demand for protection against near-term Bitcoin price fluctuations.
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