Options Market Signals Doubt Bitcoin Price Will Rise After Halving
To the moon or to the cellar? Options traders are buying bitcoin puts, or bearish bets on the cryptocurrency, heading into next month's halving.
Investor interest in bitcoin options listed on the Chicago Mercantile Exchange peaked to record highs in the days after Monday's halving event.
Open contracts on bitcoin options rose to record highs on Thursday as the cryptocurrency’s price rose into five figures. It's not necessarily a bullish sign, though.
Open interest in bitcoin options listed on the Panama-based exchange jumped to a record $1 billion Tuesday, according to data from Skew.
With a key metric declining to record lows, bitcoin’s options market may be underpricing the cryptocurrency’s future volatility.
Activity in the bitcoin options market picked up pace on Thursday, as spot prices jumped above key resistance over $7,000.