Bitcoin Indicator Suggests Potential for Leverage Washout
A ratio related to bitcoin futures and the volatility of options has more than doubled this year, signaling outsized levels of leverage and speculation.
A ratio related to bitcoin futures and the volatility of options has more than doubled this year, signaling outsized levels of leverage and speculation.
The approval of the spot bitcoin ETFs constituted a landmark event for the $1.7 trillion digital asset industry. With institutional investors on board, demand for bitcoin will grow significantly.
Options dealers likely bought ETH in spot/futures market to hedge their short positions in call options, adding to bullish momentum, BloFin’s Griffin Ardern said.
For the third time in a week, prices quickly pulled back after testing the $53,000 level.
The strategy provides a hedge against a potential bitcoin price pullback to $47,000 and costs over $20 million, according to crypto block trading service provider Greeks.Live.
Veri from past cycles entered around halvings and a key technical analysis tool suggest that the path of least resistance is higher.
Bitcoin’s uptrend is supported by strong trading volumes, a bullish sign for continuation, a FalconX report said.
The bank lifted its rating on Coinbase stock to reflect rising crypto prices following the approval of spot bitcoin ETFs in the U.S.
The present bias towards long positions means potential for a long squeeze, where investors who hold long positions feel the need to sell into a falling market to cut their losses.
Starknet is set to launch its native token STRK through an airdrop of 728 million coins on Feb. 20.