Bitcoin Traders Divided on Near-Term Price Rise After Jackson Hole – Decrypt

Bitcoin traders had mixed reactions in derivatives markets after the Jackson Hole Economic Symposium on Friday, balancing optimism about future gains with caution about the pace of the potential upside.

The market has seen an increase in call spread buying, a sign that traders are betting on further price increases, QCP Capital said in its latest investor report. Note.

However, there was also significant selling of Bitcoin call options with a strike price of $100,000, particularly for contracts extending to March 2025. data From the BasedMoney program.

This indicates that while market sentiment is broadly bullish, traders are not expecting a sharp or immediate price increase, QCP said.

Despite the recent rally in Bitcoin and Ethereum, volatility indicators are pointing to a shift towards put options, reflecting trader concerns about potential downside risk through October.

Implied volatility, a key indicator of future price movements in options trading, is biased toward puts, indicating greater concern about a potential decline in prices than optimism about rising prices.

Simply put, Bitcoin and Ethereum are rising, but more traders are hedging against a possible decline by purchasing put options.

A put option is a type of financial contract that gives the holder the right to sell an asset at a specific price within a certain period of time. When a trader buys a put option, it is usually indicating that they are concerned that the price may fall and are trying to protect themselves.

This follows widespread bullish sentiment following the appointment of Federal Reserve Chairman Jerome Powell. hinted Central banks could start cutting interest rates as soon as next month, which could see Bitcoin react with a price rise.

QCP said the recent price rise has not been accompanied by a corresponding increase in volatility, raising concerns about caution among traders.

The firm added that with short-term volatility declining, Bitcoin is expected to remain within the $62,000 to $67,000 range until at least October.