#MarketPullback Caution in cryptocurrency options
Options markets paint a similarly cautious picture. “Bitcoin’s 30-day skew has gone from +3% to -1.5%, meaning put options are now priced higher than calls,” said Nick Forrester, founder of derivatives platform Drive.xyz. “This suggests strong demand for downside protection, as traders anticipate a one-to-two-month downtrend.”
"Late July saw a wave of profit-taking of between $6 and $8 billion, suggesting that institutions, after seeing solid returns, were reducing risk in preparation for a volatile third quarter. Nearly $10 billion of Bitcoin was sold off-market on July 15, causing a temporary 4% price decline, while miners sold around 15,000 Bitcoin after hitting new record highs," Forrester added