As Bitcoin approaches the $97,000 mark, the atmosphere among professional traders is one of caution and concern. According to the official information, despite the cryptocurrency's impressive rally, underlying market dynamics suggest a more cautious approach to trading strategies.
Delta Skew of Options
The delta skew of options currently stands at 4, indicating a notable preference for put options over long positions. This trend highlights traders' apprehension about potential market corrections, as many are hedging against possible downturns.
Geopolitical Tensions and Market Sentiment
Additionally, ongoing geopolitical tensions are contributing to this cautious sentiment, as uncertainties in global affairs can significantly impact market stability. With Bitcoin's target set at $105,000, traders are weighing the risks carefully. This suggests that while optimism exists, vigilance remains paramount.
The recent decline in open interest for Bitcoin derivatives, which has dropped by 31% since October 2023, may indicate a significant market reset. This trend contrasts with the cautious sentiment among traders as Bitcoin approaches $97,000. For more details, see further insights.
