Gate Research Institute reports that the crypto market is experiencing high implied volatility as demand for options hedging rises. Bitcoin recently fell below $90,000, marking a 27% drop from its October 6th high, and forming a 'death cross' as the 50-day moving average crossed below the 200-day moving average. This technical indicator suggests a bearish medium-term trend.
Cryptocurrency ETFs have seen net outflows of $1.26 billion this month, reflecting a decline in institutional risk appetite. The options market has responded with increased demand for downside protection, pushing short-term put implied volatility higher. Currently, Bitcoin's implied volatility stands at 50.9%, while Ethereum's is at 75%. The 25-Delta Skew for both cryptocurrencies has turned negative, indicating heightened market panic and defensive sentiment. A notable transaction involved a buy order for BTC-281125-116000-C and a sell order for BTC-211125-107000-C, totaling 1,500 BTC with premiums of $96,000, reflecting a strategy to hedge against potential market declines.
Crypto Market Faces High Implied Volatility Amid Bearish Trends
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