Demand for Bitcoin options is increasing, particularly among traders seeking price protection. This trend is occurring amid global economic uncertainties.
Bitcoin Options: Increased Demand for Protection
Bitcoin failed to reclaim the $115,500 mark on Monday amid rising demand for price protection through Bitcoin options. Traders have begun to exhibit caution, with interest in bearish strategies significantly increasing: the put-to-call ratio at 90% indicates a growing preference for neutral-to-bearish strategies.
Options Data Not Necessarily Bearish
While such data may appear bearish, it does not necessarily reflect traders betting on a decline in Bitcoin's price. Hedging often occurs in response to negative external pressures. Companies like Caterpillar and Saudi Aramco are experiencing challenges that may influence the demand for protective options.
Signals of Increased Risk Aversion in the Market
Interest in riskier assets is diminishing despite sustained interest in artificial intelligence. Achievements in this field do not guarantee stable income. For instance, yields on the US 10-year Treasury have dropped to 4.21%, indicating that investors are favoring safer assets amid global uncertainty.
Currently, the demand for Bitcoin options is linked to protective strategies, highlighting economic instability. However, this does not necessarily predict an impending drop in Bitcoin prices.
