Crypto Options Market Flashes Bitcoin Warning as Silvergate Winds Down Operations

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Key measures of market sentiment show relatively higher prices for bitcoin put options used to protect against price slides, a sign of renewed nervousness in the market. reports godbole17

has fueled digital-asset investor anxiety, spurring demand for derivatives that offer protection against price slides in major tokens.

At press time, the 30-day bitcoin skew, derived by looking at the difference in implied volatility/demand for cheap out-of-the-money calls and OTM put options expiring in four weeks, shows the strongest bias for bearish put options in over two months. That's a sign investors are worried about a deeper slide in the bitcoin price and are buying put options to hedge their long spot or futures positions, or are simply looking to profit from potential bearish price action.

"BTC 25d skews are firmly back to puts > calls in shorter dates as it feels upside momentum has been sucked out of the market," Paradigm, an institutional liquidity network for crypto derivatives traders, said in a market update early Thursday. A call option gives the purchaser the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option gives the right to sell. A long position is one in which an investor owns the asset.has deteriorated amid the bitcoin price slide. That means a small sell order can lead to an outsized price drop. Depth refers to the ability of the market to absorb large buy and sell orders at stable prices.

 

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godbole17 This October/November will see the biggest stock market crash we've ever seen Cryptocurrencies will fall but decouple from stocks as people try to find stable investments Gold and silver will hit all-time highs at this time CBDC ushers in a fake bailout of the banks

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