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10x Research: Bitcoin Options Market Had Already Signaled Current Pullback, Short-Term Volatility Likely to Continue
Summary: According to a report from 10x Research, the Bitcoin options market had already issued a warning signal before the recent price pullback. Data shows a steep curve in short-term options volatility, with investors increasing their hedging demand for near-term risks while long-term expectations remain relatively stable. Since the October settlement event, options skew has significantly ...
According to a report from 10x Research, the Bitcoin options market had already issued a warning signal before the recent price pullback. Data shows a steep curve in short-term options volatility, with investors increasing their hedging demand for near-term risks while long-term expectations remain relatively stable. Since the October settlement event, options skew has significantly shifted towards bearish, reflecting an increase in demand for put options and hedging activities. The report notes that Bitcoin's implied volatility is still higher than actual volatility, favoring seller strategies; while Ethereum's implied volatility is now lower than actual volatility, creating opportunities for buyers. Trading flows indicate that Bitcoin investors are selling call options for profit, while Ethereum traders are defensively buying put options. 10x Research believes that shorting Bitcoin short-term options volatility and positioning for long-term Ethereum exposure can capture opportunities in time decay and volatility regression.
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Link: 10x Research: Bitcoin Options Market Had Already Signaled Current Pullback, Short-Term Volatility Likely to Continue [Copy]
