The derivatives market shows divergence: low volatility may suppress short-term momentum in the crypto market
According to the latest cryptocurrency derivatives data released by Greeks.Live, traders are exhibiting complex and contradictory emotional layouts in the current market environment.
Although some traders maintain a bullish outlook, setting a short-term target for Bitcoin at $112,000, the overall market sentiment is clearly leaning towards caution.
Derivatives trading strategies have become the focus of attention in the current market. Several traders have observed a significant volatility compression phenomenon, which will also suppress the likelihood of large price fluctuations over the weekend.
Against this backdrop, traders actively manage options positions, generating premium income by selling ETH call options and BTC put options, and plan to take profits before overnight positions.
Market divergence is particularly evident in the layout of options strike prices. The bearish side buys put options at the $109,000 position for downside protection, while the bullish side sells call options above $110,000, indicating a fundamental judgment difference between the two sides regarding short-term price trends.
Traders have even pointed out that "the crypto community is overly optimistic about the fourth quarter," and described recent price actions as "foolish price movements," reflecting some market participants' concerns about the current market situation.
In summary, this contradictory mindset reveals traders' defensive layout strategies in an environment of increased macro uncertainty. They capture time value decay profits through volatility trading and hedge potential downside risks with options combinations, showing that professional traders' emphasis on risk management is increasing.
