The cryptocurrency community is experiencing mixed emotions as traders engage in profit-taking by selling call options at current levels, while maintaining cautious optimism. Bitcoin remains the focal point, with traders closely monitoring its potential rise to the 120 level. The IBIT index's 10 basis point increase suggests underlying strength, posing challenges to short positions.
Despite recent strong price performance, the options market structure reveals a persistent bearish skew, indicating institutional expectations of a downturn. Volatility has been sold off, creating a notable divergence between options pricing and spot market momentum. Professional traders are selling call options during upward movements, highlighting a disconnect between bearish derivatives positioning and positive equity fund flows.
Bitcoin Market Sentiment Mixed Amid Option Market Divergence
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