The world’s largest cryptocurrency Bitcoin (BTC) continues to face sturdy promoting strain. On Monday, Might 23, the BTC worth tanked 3% transferring beneath $30,000 regardless of the U.S. fairness market transferring increased.
Bitcoin continues to commerce within the vary of $28,500-$31,500 for some time now. Glassnode information exhibits that the BTC market has traded decrease for eight consecutive weeks marking it the longest “steady string of pink weekly candles in historical past”.
Moreover, a glance into the Bitcoin derivatives market suggests the dangers of additional draw back, at the least over the following three to 6 months. In its newest report, on-chain information supplier Glassnode explains that the Bitcoin choices market continues to cost within the near-term uncertainty.
In the course of the market sell-off final week, the Bitcoin choices implied volatility surged considerably. Glassnode explains:
Quick-dated at-the-money choices noticed IV greater than double, from 50% to 110%, while 6-month dated choice IV jumped to 75%. It is a break increased from what has been an extended interval of very low implied IV ranges.
![](https://cdn.coingape.com/wp-content/uploads/2022/05/24103052/Bitcoin-Options-Implied-Volatility.png)
Bitcoin Put Choices Have Greater Choice
With a really sturdy bearish sentiment, the Bitcoin put choices have a really sturdy desire wanting into the tip of Q2 2022. Simply over the past two weeks, the Bitcoin put/name ratio for open curiosity has surged from 50% to 70%. It implies that the market is making ready to hedge additional draw back dangers.
By the tip of Q2, there are sturdy put choices with strike costs of $25k, $20k, and $15k. On the identical time, the open name choices are very low. Thus, by the mid of this 12 months, traders have a powerful desire for hedging dangers thereby speculating additional draw back worth motion.
![](https://cdn.coingape.com/wp-content/uploads/2022/05/24103946/Bitcoin-Options-Open-Interest.png)
On a long-term foundation i.e. by the tip of the 12 months, the choices curiosity setup for Bitcoin is notably constructive. Glassnode explains:
There’s a clear desire for name choices, with focus round strike costs of $70k to $100k. Moreover, the dominant put choice strike costs are at $25k and $30k, that are at increased worth ranges than the mid-year.
The offered content material could embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability to your private monetary loss.