Bitcoin's Upside May Be Capped
Some experts believe that Bitcoin's upside is capped due to options data and market maker activity suppressing rallies, although the long-term outlook remains bullish.
Following last week's tumultuous event, which triggered the worst cascading set of liquidations in crypto's 16-year history, Bitcoin has slowed its momentum, trading at around $113,500, down about 1.5% over the past 24 hours, according to CoinGecko data.
Heightened bearish activity during last week's sell-off has led to a significant increase in put options expiring on October 31, as noted by Hendrik Ghys, founder of Thalex Global, in a tweet.
Implied volatility, a key metric reflecting market expectations of future price swings, has repriced downward to the low 40s in the short term and around 45% for longer horizons.
Author's summary: Bitcoin's upside may be capped due to market activity.
- Bitcoin's price: $113,500
- 24-hour change: -1.5%
- Put options expiring on October 31 have increased significantly