Bitcoin Option Fear Index Soars to New High Since April! History Suggests: Contrarian Investors May Welcome Opportunity to Invest?

Fear in the crypto market is releasing strong signals through options indicators. According to Deribit data, the 30-day Bitcoin options Delta skew (put-call) has soared to 12%, a new high in more than four months. It should be noted that in a market-neutral state, this indicator usually fluctuates only between -6% and +6%, reflecting the balanced pricing of bullish and bearish options. A value exceeding 10% often means that the market is falling into extreme fear.

However, history always hides opportunities in fear. Looking back on April 7, the indicator soared to 13% when Bitcoin fell below $74,500 for the first time in five months, and the market was in mourning. But then, investors who dared to go against the trend reaped a 40% gain within a month - Bitcoin strongly climbed to $104,150 on May 8.

As Cointelegraph analysis points out, there is no evidence that the Bitcoin bull market has ended. Traders' fears often exceed the scope of rationality, and the current market turmoil may even become a "window of opportunity" for Bitcoin due to potential fund outflows from the stock market, and the long-term bullish trend has not been shaken. This market sentiment triggered by the fear index may be paving the way for patient investors to profit from contrarian strategies. $ETH $BTC