Share this article
Bitcoin Options Traders Leaning Bearish Despite Price Recovery
Bitcoin's price recovery fails to subdue fears of a deeper bull market pullback.
Updated Mar 6, 2023, 3:25 p.m. Published May 6, 2021, 11:41 a.m.
Make us preferred on Google
Bitcoin traders appear cautious about the sustainability of the cryptocurrency's swift recovery from Tuesday's low of $53,000.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- The top cryptocurrency jumped 8% on Wednesday, erasing Tuesday's slide from $57,000 to $53,000, as the U.S. Treasury Secretary Janet Yellen backtracked on comments suggesting interest rate hikes may be needed to stop the economy from overheating.
- Bitcoin (BTC) is currently trading near $58,000, representing a 21% gain on lows near $48,000 seen at the end of April, according to CoinDesk 20 data.
- The recovery, however, has failed to subdue fears of a deeper bull market correction. The one-week put-call skew remains entrenched in the positive territory for the third straight week in a sign of persistent demand for short-term put options or bearish bets.
- Traders look to be buying "protective puts" – purchasing puts against long bitcoin positions in the spot or futures market.
- The put-call skew is a gauge of the value of puts relative to calls; a positive skew implies that demand for puts (bearish options bets) is outstripping calls (bullish bets).
- The one-week put-call skew is currently hovering near 9%, having turned positive with bitcoin's drop from $60,000 to sub-$50,000 in the second half of April.
- However, the options market continues to show long-term bullish with three- and six-month skews returning negative values. The one-month gauge is now hovering near zero.
Also read: Ether Traders Load Up on $8K Call Options in Bet Price Will Double by July
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Number of wallets with 1 million XRP is rising again
On-chain data points to underlying demand for XRP as ETFs pull in over $90 million.
What to know:
- XRP has fallen about 4 percent so far this month, even as on-chain data point to strengthening underlying investor interest.
- U.S.-listed spot XRP ETFs have attracted a net $91.72 million in inflows this month, bucking the trend of sustained outflows from bitcoin ETFs.
Top Stories
