Bitcoin Options Skew Drops as Oil Prices Rise Amid Middle East Tensions
Bitcoin's short-term options skew dropped as traders sought downside protection amid rising tensions in the Middle East and increased oil prices. Key points include:
- The seven-day skew fell to -3.84%, the lowest since April 16, indicating heightened demand for put options.
- Put options became the most expensive relative to calls in three months.
- Bitcoin's price declined to its 50-day simple moving average at $103,150, marking a 4.59% loss over 24 hours.
- WTI crude oil prices rose over 6% to $74.30 per barrel, the highest since February 3, following Israeli airstrikes on Iran.
These developments may influence inflation expectations globally and affect Fed rate cut predictions, contributing to volatility in stocks and cryptocurrencies.