American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Bitcoin options show increased caution as $100K remains elusive

by admin November 27, 2024
November 27, 2024
Bitcoin options show increased caution as $100K remains elusive

Bitcoin, the largest cryptocurrency, has reversed course after flirting with the $100,000 mark.

The digital asset reached an all-time high of $99,830 on November 22 but has since dropped over 8% to $91,377.32 as of Tuesday.

As of 11:48 am IST on Wednesday, BTC stood at $93,099, according to CoinGecko.

The downturn comes despite a stellar 120% rise in 2024, with gains fuelled by bullish market sentiment following Donald Trump’s presidential election victory.

Trump’s pro-crypto stance, including pledges to make the US a global cryptocurrency leader and amass a national bitcoin stockpile, has played a pivotal role in driving demand.

Investors shift focus to protective strategies

Market activity points to heightened caution among bitcoin investors.

Nick Forster, founder of Derive, an on-chain options platform with $7.1 billion in total trade volume, noted a significant shift in sentiment.

The call-put skew index for December 27 bitcoin options expiry dropped 30% in the last 24 hours, signalling an uptick in protective hedging.

“The decline in skew reflects traders hedging against potential downside risks,” Forster told Reuters.

While calls—options to buy bitcoin—still outnumber puts—options to sell—the trend suggests a cautious market, likely spurred by bitcoin’s sharp pullback from its peak.

Major price movements expected around options expiry

The December 27 expiry of $11.8 billion in bitcoin options could act as a catalyst for substantial price movements.

According to Forster, there is a 68% probability that bitcoin will move 16% lower to $81,493 or 20% higher to $115,579 by this date.

Extreme scenarios include a 29.5% decline to $68,429 or a 41.8% rally to $137,645, though these outcomes have only a 5% probability.

Notably, data from Derive shows a 45% chance of bitcoin hitting $100,000 again, with a 4% chance of exceeding $150,000.

Profit-taking drives selling pressure

Profit-taking by long-term holders is adding to bitcoin’s recent sell-off.

Analysis from _checkonchain.com reveals that $60 billion worth of bitcoin supply has been distributed in the past 30 days.

Since bitcoin’s low of $15,479 during the FTX collapse two years ago, long-term holders have moved 21% of their supply this November, marking the heaviest profit-taking in this cycle.

Anthony Pompliano, founder of Professional Capital Management, cited this data in a letter to clients, underscoring its impact on market dynamics.

Despite recent declines, bitcoin’s volatility metrics remain stable, suggesting the market is bracing for further swings.

The cryptocurrency’s seven-day implied volatility stands at 63%, closely aligned with the 30-day level of 55%.

“This close alignment indicates traders are expecting significant price movements soon,” Forster added.

The post Bitcoin options show increased caution as $100K remains elusive appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
US-China tensions drive $4.1 trillion in assets to Singapore, surpassing Hong Kong
next post
S&P, Nasdaq climb while Dow dips amid Trump tariff concerns; Amgen, Kohl’s shares tumble

Related Posts

Iran’s presidential election heads to runoff after inconclusive...

June 30, 2024

Italy bans puppy yoga classes amid welfare concerns

May 5, 2024

Exclusive: Israeli forces fired on food convoy in...

February 22, 2024

Raids and fines for Ramadan fast breaking spotlight...

April 10, 2024

UBS strategist warns market rally may stall in...

August 10, 2025

Far right wins first round of France’s parliamentary...

July 2, 2024

Rate cuts back on the table? Fed seen...

February 26, 2025

African leaders spearhead efforts to tackle terrorism across...

April 25, 2024

Six dead in mass stabbing at Sydney shopping...

April 14, 2024

Hundreds queue in Moscow to visit grave of...

March 4, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Europe bulletin: Manchester synagogue attack aftermath, stocks close higher

      October 5, 2025
    • Evening digest: Trump sets deadline for Hamas, Canada’s slowdown, BTC rebounds

      October 5, 2025
    • Iran executes six people for alleged links to Israel, state media reports

      October 5, 2025
    • US digest: Trump’s Hamas ultimatum, government shutdown stalemate continues

      October 5, 2025
    • Japanese stocks may extend record run as Takaichi win revives ‘Abenomics’

      October 5, 2025

    Categories

    • Business (4,191)
    • Investing (2,958)
    • Latest News (2,080)
    • Politics (1,536)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved