Options Market Warns of Hidden Risks as Bitcoin Price Remains Steady
The recent calm in Bitcoin's price has some investors on edge as data from the options market suggests a growing number of traders are hedging against short-term downside risks.
According to recent figures, US spot Bitcoin ETFs saw net inflows of $754 million in the first week of August, but the options market is indicating a different story.
A remarkable 53.8% of trading volume over the last 24 hours has occurred in put options, which are bets against a price increase. Most actively traded contracts were put options with strike prices ranging from $62,000 to $63,000.
While this may suggest that some investors expect a short-term pullback in Bitcoin's price, it is not entirely bearish. Total open positions remain largely bullish, with 60.7% of positions in call options.