It now appears that options traders are beginning to grow increasingly bullish on the cryptocurrency - a trend that is elucidated by the recent collapse in BTC's short-term options skew.
Bitcoin sees collapsing options skew following overnight rally.
It now appears that this rally - despite it being somewhat fleeting - has shifted the dynamic amongst options traders.
Data shows that the cryptocurrency's short-term options skew has cratered throughout the past couple of days.
Options skew refers to the volatility rates seen between contracts with different expiration dates for the same underlying asset.
One prominent blockchain data firm - aptly named Skew - spoke about the shift in dynamics seen while looking towards BTC's options skew in a recent tweet, noting that its decline shows that traders are going long.
"Short term skew has collapsed to flat in the last few days as bitcoin options traders turn bullish."
Following the overnight rejection at $9,700, Bitcoin has been caught within a bout of sideways trading around $9,400.
It doesn't appear that traders are anticipating this to last for long as options open interest on the CME has climbed by $250 million in the past few weeks - likely in anticipation for today's May expiry.
Because the recent dive in options skew suggests that traders are leaning bullish, it does seem that they widely anticipate the crypto's recent uptrend to continue strong.
Bitcoin's short-term skew collapses as CME options volume rockets
Published on May 29, 2020
by Cryptoslate | Published on Coinage
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