Mixed Reactions in Bitcoin Derivatives Market Reflect Caution and Optimism

• Bitcoin traders show mixed reaction in derivatives market after Jackson Hole symposium.
• Increased buying of call spreads indicates optimism for future price increases.
• Significant selling of Bitcoin call options with $100,000 strike price suggests caution for immediate price surge.
• Volatility indicators show shift toward put options, reflecting concerns about potential downside risks.
• Bitcoin's sustained demand may lead to breakout from consolidation range.
• Implied volatility skewed toward puts, indicating more concern for price drops than optimism for increases

Summary :
Bitcoin traders are showing mixed reactions in the derivatives market following the Jackson Hole economic symposium. While there is increased buying of call spreads, indicating optimism for future price increases, there is also significant selling of Bitcoin call options with a strike price of $100,000, suggesting that traders are not anticipating a sharp or immediate price surge. Volatility indicators show a shift toward put options, reflecting traders' concerns about potential downside risks through October. Despite recent gains in Bitcoin and Ethereum, more traders are hedging against a possible decline by purchasing put options. The recent price rise in Bitcoin has not been accompanied by a corresponding increase in volatility, signaling caution among traders. Bitcoin is expected to remain within the $62,000 to $67,000 range until at least October. Following Fed Chair Jerome Powell's dovish tones at the Jackson Hole Symposium, there has been aggressive call spread buying for longer-term options expires, indicating growing optimism about Bitcoin's future performance. However, heavy selling of calls around the $100,000 strike suggests that the market is bullish but not expecting a blow-out move soon. Bitcoin implied volatility is currently more skewed for puts than calls until October expirations, indicating hedging for potential price drops in the near term.

Sources :

- Decrypt
- TheBlock