CoinVoice recently learned that CF Benchmark analysts said that despite Bitcoin breaking through the $66,000 mark after yesterday's weak inflation, investors are still prepared to pay a premium for short-term downside protection. The implied volatility of out-of-the-money put options remains higher than that of call options. Derivatives traders are willing to pay a higher premium for out-of-the-money (OTM) put options, which is an indicator of short-term market bearishness. The increase in implied volatility (IV) of OTM put options indicates that traders are essentially hedging against a potential decline in the value of Bitcoin.
Analysts noted that the volatility curve between long-term put and call options is "relatively flat," while call options are slightly tilted. "This suggests that investors are more optimistic about Bitcoin's long-term prospects. If expectations of deflation begin to accelerate after a favorable CPI report, it will be worth watching whether the bias for call options increases." [Original link]
