Bitcoin continued to fall sharply, falling below $58,000 for the first time in a while. The decline is believed to be due to rising inflation concerns, a more hawkish Federal Reserve, and the dollar’s strength in recent weeks.
The situation for Bitcoin is deteriorating at the moment, and this is reflected in the options market. Data shows that betting in the options market is on the rise. $BTC It drops to $50,000.
Analyst Omkar Godbole’s analysis shows that investors in the Bitcoin derivatives market are taking positions expecting the price to fall further, not to rise.
The analyst noted that after recently falling to $57,700, Bitcoin has partially recovered to around $58,800, with open positions increasing to $768,000. $BTC.
At this point, analysts noted that the price of a put option, which bets on a decline in prices in the options market, is higher than a call option through all expirations. Demand for $50,000 Bitcoin put options expiring in September is on the rise, according to data from Paradigm Trading Desk.
In conclusion, according to analysts, this positioning indicates that investors are increasing the likelihood of: $BTC It will be below $50,000 by the end of the third quarter.
Investors have started raising money, but Bitcoin could fall again!
Glassnode reports long-term investors have resumed buying as talk of Bitcoin reaching $50,000 grows $BTC. However, despite these purchases, the risk of eventual capitulation remains.
Glassnode analysts say the exit of institutional investors and the rise in put positions in the options market have had a negative impact on investor sentiment, but long-term holders are starting to accumulate again and many wallet groups are increasing their holdings. $BTC Collection. Furthermore, the spot order books of Binance and Coinbase are showing a trend of buy orders.
This indicates a transition from a sell trend to an accumulation trend. $BTC It trades for less than $60,000.
Despite this positive signal, analysts say investor anxiety remains high; $BTC The amount of loss is greater than the amount $BTC We are making a profit.
In this context, Glassnode noted that risks still exist due to the high demand for put options in the options market and the increase in leveraged long positions, which could lead to further long-term liquidations and reduced demand.
Analysts at Glassnode recently said there is still potential for further price declines before a market bottom definitively forms.
*This is not investment advice.
