RATE Group | Bitcoin Price Tests $9.4K as Demand for Put Options Drops
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Bitcoin Price Tests $9.4K as Demand for Put Options Drops

28 May Bitcoin Price Tests $9.4K as Demand for Put Options Drops

Posted at 15:41h in Cryptocurrency News by

Bitcoin’s price is gathering upward momentum as traders buy fewer put options, which are bearish bets on the top cryptocurrency. 

At press time, bitcoin was changing hands near $9,400, representing a 2% gain on the day, according to CoinDesk’s Bitcoin Price Index. On a week-to-date basis, the cryptocurrency is now reporting over 8% gains.

Bitcoin’s recent price rise is accompanied by a slide in demand for put options. Such derivative contracts give the holder the right but not the obligation to sell the underlying asset at a predetermined price on or before the predetermined rate. Meanwhile, a call option gives the holder the right to buy, 

skew_btc_25d_skew-5
Source: Skew

The one-month put-call skew, which measures the price of puts relative to that of calls, is currently at 6.6%, down from its multi-month high of 22% on May 22, according to data provided by the crypto derivatives research firm Skew.

The metric fell sharply from 15% to 5% on Wednesday as prices rose from $9,000. This confirms…

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