Bitcoin Options Market Sentiment Shifts as Price Momentum Slows
A recent surge in Bitcoin's price has lifted market sentiment across the cryptocurrency sector. However, as this upward momentum slows, large investors in the options market have adjusted their expectations for future price movements.
According to research from Greeks.live, implied volatility (IV) for short- and medium-term options is decreasing rapidly, but remains about 10% higher than two weeks ago. In contrast, IV levels for medium and long-term options have increased by less than 2%, indicating a more limited expectation of price fluctuations in the coming period.
A significant proportion of existing option positions are set to expire at the end of the month, with approximately 40% of these positions concentrated between $80,000 and $90,000. This concentration could provide resistance for upward movement if the Bitcoin price reaches this region.