Investor movements in the options markets linked to Bitcoin (BTC) indicate increasing levels of caution, as many are seeking to protect their positions from the possibility of the digital currency dropping to $100,000, amidst rising geopolitical and economic uncertainty looming over global financial markets.
Trading platforms have seen a surge in the ratio of sell contracts to buy contracts, reaching 2.17 over the last 24 hours, reflecting a growing tendency towards hedging against market volatility. Bitcoin recorded its highest historical level at $111,980 on May 22, after a rise of over 50% following Donald Trump's victory in the presidential elections in November, known for his pro-cryptocurrency stance. However, the currency later declined and settled around $105,299 on Thursday, with no significant change noted.
Given the rising geopolitical and economic uncertainty, and increasing hedges by investors against a drop in the price of Bitcoin to $100,000, will Bitcoin (BTC) recover soon, or will it be affected by the volatile events in the Middle East?