$2.52B in bearish Bitcoin options signal pro traders are hedging their bets

Bitcoin has been trying to break the $60,000 resistance for the past 23 days.

At the moment, there are multiple signals that the crypto market is overheating.

The combined altcoin market capitalization surged to $800 billion from $450 billion in 60 days.

Even though a 60% average historical volatility is not mild, this is the lowest the metric has been in four months.

Bitcoin’s high volatility causes options to trade at very high premiums, making buying downside protection quite costly.

Although there are multiple expiry dates involved, to put things in perspective, these 42,800 put options for the May 28 expiry would cost $56.4 million today.

The data shows that some wealthy players are betting on ultra-bearish BTC options, but primarily as protection against the chance of downside given the state of the “overheating” market.

Although looking at the extremes might paint a bearish picture, traders should remember that the call and put options between $50,000 and $66,000 are balanced.

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