Bitcoin Options Traders Show Decreased Demand for Upside Protection
Bitcoin (https://holder.io/coins/btc/) has traded sideways after reaching record highs above $110,000. This stagnation coincides with declining bullish sentiment among options traders related to BlackRock's spot bitcoin ETF.
- The one-year put-call skew indicates market sentiment regarding volatility risk for put options against calls.
- IBIT's one-year skew increased to nearly zero from a low of -3.8 two weeks ago, suggesting reduced demand for upside options.
- Traders may be anticipating a pullback in prices.
- Deribit options show a similar trend, with short-term call skews weakening as calls and puts trade at par.