While the Bitcoin (BTC) price has fallen sharply due to the rising tensions in the Middle East, investors have also taken positions in the options market with the expectation of a decline.
The rising geopolitical tension in the Middle East region has directly affected the cryptocurrency market and the Bitcoin price has been pulled to an important support level. The option positions taken by investors in order to protect themselves from the price decline reflect the anxiety that has become evident in the market.
According to the data provided by Amberdata, the 7-day skew rate, which shows the short-term expectation in the Bitcoin options market, has decreased to -3.84 percent, the lowest level in the last 3 months. This rate reveals that put options with a sell side have become more expensive than call options with a buy side, and investors are taking precautions against the decline. The increasing demand for put options has also pulled the 30-day and 60-day skew rates into the negative zone.
Following the developments, Bitcoin (BTC) lost 4.59 percent in the last 24 hours and fell to its 50-day simple moving average (SMA) at $103,150. BTC managed to briefly exceed $110,000 at the beginning of the week. The eyes of investors in the market are now turned to whether this critical support can be maintained.
Risk alert in the options market
The fact that Bitcoin investors are intensively turning to put options clearly shows that market participants' concerns about the price decline are increasing. This situation is especially due to the rapid increase in oil prices and geopolitical uncertainties in the Middle East. According to experts, if geopolitical developments continue, Bitcoin price volatility is expected to increase even more in the short term.
