The Bitcoin options market, which showed optimism for the fourth quarter despite a price decline in late August, has shifted to a bearish outlook following significant market downturns in October and November. The anticipated 'Q4 rally' or 'Christmas rally' has been undermined by these declines, leading to a pervasive pessimistic sentiment.
Recent data indicates a decrease in realized volatility (RV), implied volatility (IV), and 25D skew, yet market fear persists. Long-term options data continues to suggest a bearish trend as the year-end approaches. The demand for position adjustments is high, with large orders, such as those mentioned by Jake O, likely part of this repositioning. Although a short-term bottom appears to have formed, the market remains volatile, with expectations of continued fluctuations in the final month of the year.
Bitcoin Options Market Shifts to Bearish Sentiment Amid Volatility
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