Bearish Sentiment Dominates Bitcoin Options, Analysts Observe

Implied volatility for short-term bitcoin options on the CME has risen over the past month as traders anticipate local price shifts. This is reported by The Block, citing analysts from CF Benchmarks.

According to researchers, at the end of May, the measure was roughly equal for put and call positions. However, following a 14% correction in the leading cryptocurrency in June, the balance shifted towards puts, indicating a strengthening of bearish sentiment.

“In recent weeks, we have observed a significant increase in implied volatility for short-term put trades compared to calls, indicating growing interest in tactical hedging,” noted CF Benchmarks.

This trend suggests that traders expect significant price movements or increased uncertainty, the company highlighted.

From May 31 to June 24, implied volatility for five-day put options increased by 13.3%, and from June 7 to June 24, it rose by 23%.

However, CF Benchmarks clarified that there is no sharp change in strategic positioning for long-term positions:

“Traders continue to seek long-term opportunities for bitcoin price growth, while short-term implied volatility seems to be shifting sentiment in the local perspective.”

At the time of writing, digital gold is trading at $61,300, having fallen 7.5% over the week.

Previously, On-Chain Collage analyst pointed to the Mayer Multiple indicator, which reached an eight-month low. This may indicate that bitcoin has reached a local bottom.

Earlier, several experts noted a bullish sentiment in the crypto derivatives market. On June 29, when weekly, monthly, and quarterly bitcoin options positions expire, the put/call ratio stands at 0.51, suggesting restrained optimism.