Bitcoin News

Story: How Bitcoin Options Traders Are Positioning Amid the Crypto Market Rout

By Julie Binoche

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Bitcoin’s Latest Downturn Triggers Massive Liquidations. On Monday, Bitcoin extended its weekend losses with a drop of less than 4%.

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Implied Volatility Remains Surprisingly Calm. Despite the severity of the liquidations, implied volatility — a key metric that reflects options…

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Uptick in Put-Buying Shows Bearish Short-Term Sentiment. Where the caution is more evident is in the surge of put-buying activity.

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The “Sell-the-News” Effect After Fed Rate Cut. Analysts suggest that part of the bearish positioning may be tied to the market’s response to the…

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Longer-Term Outlook Remains Bullish. Despite the cautious short-term tone, analysts argue that options positioning points to optimism…

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Ethereum Could Outperform Bitcoin in Recovery. Interestingly, Ethereum may see sharper gains than Bitcoin in the coming months.

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The Bigger Picture: Crypto in Transition. The current split in sentiment — cautious in the near term, but optimistic longer term —…

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Bitcoin’s price slump has sent shockwaves through the crypto market, triggering one of the largest liquidation events this year.

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On Monday, Bitcoin extended its weekend losses with a drop of less than 4%. While the decline itself seemed relatively modest, it sparked a liquidation cascade across the crypto…

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This wave of forced selling underscored how fragile sentiment has become in the wake of Bitcoin’s failure to build momentum following the Federal Reserve’s much-discussed rate…

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Despite the severity of the liquidations, implied volatility — a key metric that reflects options traders’ expectations of future price swings — remained surprisingly muted.

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“Implied volatility showed little change and remains low,” said Adam Chu, chief researcher at options analytics firm GreeksLive.

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The muted volatility reading indicates that while traders are hedging their positions, they do not foresee dramatic price shocks beyond the current downtrend.

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Where the caution is more evident is in the surge of put-buying activity. A put option gives investors the right to sell Bitcoin at a certain price, often used as a form of…

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“There’s a heightened demand for puts as fears of continued downward price action worry the market,” explained Sean Dawson, head of research at on-chain options platform Derive.

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