Arcane Research, a crypto market research firm, just released a report on Bitcoin’s performance. According to their findings, the coin had low volatility of over 70%, indicating that this is the first time options traders have gone in a long-term bearish direction since May of last year.
Meanwhile, Bitcoin options allow traders to speculate on BTC price swings; as the value of the coin rises, so does the price of the options. As a result, the low volatility seen indicates that investors are hesitant to gamble on the direction of the main cryptocurrency. This is also the first time since May 2021 that the coin’s choices have been this low.
Source : TradingView
Furthermore, according to Arcane Research, the coin’s volatility skew has soared since last May. The gap between market and call prices is measured by the volatility skew. The call option has historically been more expensive than the pull option, resulting in a downward option skew.
Furthermore, the present BTC option skew has reached its highest level since the general crypto meltdown in May 2021, owing to the recent decrease in BTC price. This indicates that there are more sellers than buyers in the coin, indicating a negative market.
Bitcoin option investors are currently the most pessimistic in a long time. They’re also hesitant to pick a direction in which they believe the BTC coin is heading. Furthermore, according to the article, this signals traders to buy inexpensive calls.
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