The leading currency fell by $5k earlier today from $49k to $44k and this has not shaken high net worth investors’ confidence in the leading currency. Data from Options shows that whales are bullish about BTC and projects a more rewarding future for the leading currency. Although some have predicted that bitcoin will do a further dive down in value, it has in fact scaled back up to the $48k margin at press time. The leading currency is currently exchanging hands at $48,853.14. If this turn of events continues, BTC may hit $50k and even move to the $55k margin before the week runs out.
While trying to explain the dip and the shift in the Options Market, Deribit Insights notes:
“There is still an absence of any institutional long-term hedging. In fact, funds continue to take advantage of selling June-December expiry put options at strikes below $40,000,”
From recent events in the Options market, it appears that investors are placing their bets on a continuous rally up and are not foreseeing a future where the leading currency will tank below $40k.
According to the Head of Risk and Product in Deribit, Shaun Fernando:
“The strategy of selling the downside puts is two-fold: to get premium (theta) which is higher with higher volatilities, and also because the traders don’t think a crash will happen before that expiry.”
For those who maybe considering testing the Options market, it is important to understand that trading options, be it “call” or “put” is may turn out to be a limited profit endeavor and can bring with it unlimited losses. Institutional investors and high net-worth individuals with large capital may be the best players in the Options market.
Read more articles: Whales Silently Purchase BTC Regardless of Rumours that They are Not Willing to Stimulate the Market
Readers should understand that this piece does not constitute a financial advice and is only for informational purposes. Should you want to delve into the Options market, we urge you to further research.
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