Bitcoin price drops to $20.8K as regulatory and macroeconomic pressure mounts
1 min read
Bitcoin (
Even though Bitcoin failed to break the $25,000 resistance on Feb. 21 and then experienced a 14% correction in 16 days, the 25% delta skew remained in the neutral zone for the past month. The current positive 3% skew indicates a balanced demand for bullish and bearish option instruments.
Derivatives data shows that professional traders are unwilling to go bearish, as evidenced by options traders’ neutral risk assessment. Furthermore, the margin lending ratio indicates that the market is improving as some demand for bearish bets has emerged, but the structure remains neutral-to-bullish.
Given the enormous downward price pressure from a macroeconomic standpoint, as well as ongoing regulatory pressure in the United States, bulls should probably be content that Bitcoin derivatives have remained solid.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
