According to BitcoinSistemi, recent volatility in the Bitcoin options market indicates investors are expecting BTC to remain within its current narrow price range. After a sharp decline in the fourth quarter, which erased over $1 trillion in market value, options traders have become more defensive. Over the weekend, Bitcoin dropped as much as 4.4% to $88,135, below the $100,000-$80,000 channel it had maintained for three weeks. This reflects a weakening of risk appetite in the broader crypto market, which accounts for about 60% of total market cap. Deribit data from Coinbase shows open interest in short-term options is outpacing long-term contracts, as investors sell options to generate premium income in anticipation of low near-term volatility. Wintermute strategist Jasper De Maere noted a clear near-term band trading trend in Bitcoin options, with volatility being sold and both the upper and lower wings fading. However, strong demand for long-term options suggests the door is open for larger movements in the future.
Bitcoin Options Market Shows Caution Amid Narrow Price Range and Volatility
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