HomeBitcoinBitcoin option traders are being careful during the recent increase in prices.

Bitcoin option traders are being careful during the recent increase in prices.

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  • Bitcoin’s price has gone up a lot, but people who trade options are still worried about the market going down.
  • Traders are not sure if the U. S economy can keep going. Bitcoin ETF is growing while people worry about a possible economic recession.
  • The market analysis shows careful trading, which means there is still uncertainty in the cryptocurrency market.

Even though bitcoin has been doing well, people who trade options for bitcoin are feeling unsure and worried about how the market might do in the future. They are being careful and thinking about potential problems.

Options traders are cautious as the market is going up

Bitcoin (BTC) went up by 23% in the last five days, reaching $61,344, but traders are not eager to take a positive stance. This careful feeling comes from worries about a possible decrease in the economy, shown by people wanting to protect themselves from losses. Bitcoin lost 5% in value over a week five weeks ago. Now, traders want to protect themselves in case the market goes down again.

The United States. Bitcoin ETFs received a lot of money on February 28th, adding up to $673 million. Since they started on January 11th, they have collected a total of $7. 4 Even though more money is coming in, people who trade options are not sure if this growth will last. Some people think that if the price of Bitcoin gets higher, people might not want it as much, or investors might not want to take as much risk with cryptocurrency.

Different opinions on ETF momentum

Some traders think that if the price of Bitcoin goes up, more people will sell their ETF shares. But others are not so sure. Experts say that there might be less money coming in, especially if the economy gets really bad or if it costs more for investors to get money from other places. Economist David Rosenberg thinks there’s a high chance (85%) that the U. S will experience a certain event. The economy might not be doing well in 2024, and this could have a big effect on cryptocurrencies.

Study of the Bitcoin options market shows that people feel neither positive nor negative about it. The 25% delta skew has been shifting between -7% and +7% since February 20. This fair price shows that traders are being careful, especially since Bitcoin didn’t go above $52,500. Cryptocurrency investors are feeling anxious while they are saving up money to invest. This is clear from the data.

Investors trying to predict the future prices of assets

Top traders at exchanges like Binance and OKX didn’t take a strong position in the BTC futures market until recently. This gives us more information about how traders are behaving. But when the price of Bitcoin went over $53,000, there were more people betting that the price would go up, possibly because others were forced to sell their bets that the price would go down. However, traders at OKX have not reached their highest level of monthly trades when comparing long and short positions, indicating that there is still doubt and uncertainty.

Warning: This information is not a recommendation for trading.

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