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Bitcoin Option Traders Seem Doubtful At Entering Directional Trades!

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Data from Bitcoin options shows that crypto traders are currently selling out and uncertain about entering directional bets on the coin’s future transactions.
This is the highest occurrence of this kind of investors’ sentiments on the coin since last year May, when more than 50% of Bitcoin’s value declined.
Crypto market analysis company Arcane Research had recently published a report on the performance of Bitcoin. Their research highlighted that the coin experienced low volatility of over 70%, bolstering that this is the first time options traders have gone on a long-term bearish direction since last year May.
Meanwhile, Bitcoin options enable traders to trade on BTC price movements; as the coin appreciates, the price of the options increases.
Consequently, the analyzed low volatility shows that investors aren’t ready to bet on the direction of the leading cryptocurrency. Also, this is the first time that the coin’s options have been this cheap since May 2021.
In addition, Arcane Research stated that the coin’s volatility skew has peaked since last May. The volatility skew evaluates the difference between market price and call price. Generally, the call option has been more costly than the pull options, creating a downward option skew.
Moreover, the recent depreciation in BTC price, the current BTC option skew, has now surmounted to its highest since the overall crypto crash in May 2021. This suggests more sellers than buyers in the coin, resulting in a bearish market.

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