Bitcoin, Ether Could Witness Upside Volatility as $15B Options Expiry Looms
Dealer hedging could breed volatility at around $70,000, one observer said.
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Dealer hedging could breed volatility at around $70,000, one observer said.
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By locking in the right to sell ETH at a predetermined price, options traders are preparing for short-term weakness after the cryptocurrency hit a two-year high.
Bitcoin traders are having a relook at the $200,000 call option after a gap of nearly three years.
Some traders have started buying puts to protect against a potential sharp decline, according to Greeks.Live.
Options dealers likely bought ETH in spot/futures market to hedge their short call exposure, adding to bullish momentum, BloFin’s Griffin Ardern said.
Bitcoin has rallied 35% in three weeks, with mining reward halving due in April.
The bullish flow is reminiscent of the 2020-2021 bull market when traders consistently snapped up bitcoin calls at levels well above the going market rate.