According to Greeks.live, a leading cryptocurrency analysis platform, there is a significant decline in trader sentiment amid market regulation.
Options Market Data: Decline in Optimism
Adam, an analyst at Greeks.live, noted a notable change in the options market. The spread between various maturities has widened. During the year-end bull market, option spreads across maturities remained close, with fluctuations around 5% and spreads typically no more than 1%, reflecting participant optimism.
Impact of Regulations on the Market
However, recent regulations have reversed this trend. The gap between distortions for different maturities has started to widen significantly. The short-term skew has fallen significantly, indicating diminished enthusiasm among market participants.
January Outlook
According to the analyst firm, market enthusiasm has waned significantly, especially among options traders. Optimism for January, a critical period for market activity, has declined, suggesting a shift in sentiment after the last bull market.
Sentiments in the options market have shifted notably, which may impact the future development of the cryptocurrency market at the beginning of the new year.
