By locking in the right to sell ETH at a specified price, options traders are preparing for short-term weakness after the cryptocurrency hit a two-year high.
A ratio related to bitcoin futures and the volatility of options has more than doubled this year, signaling outsized levels of leverage and speculation.
Options dealers likely bought ETH in spot/futures market to hedge their short positions in call options, adding to bullish momentum, BloFin's Griffin Ardern said.
The strategy provides a hedge against a potential bitcoin price pullback to $47,000 and costs over $20 million, according to crypto block trading service provider Greeks.Live....