CME Options Data Suggests Cautious Outlook for Bitcoin
The post CME Options Data Suggests Cautious Outlook for Bitcoin appeared first on Coinpedia Fintech News
According to CF Benchmarks’ analysis of CME options trading data, the odds of a near-term Bitcoin rally remain slim, a barometer for institutional activity. CF Benchmarks also found that implied volatility for short-dated out-of-the-money (OTM) put options is higher than implied volatility for OTM calls. This suggests that investors are still cautious about near-term downside risks and are willing to pay a premium for protective puts. Investors are growing more optimistic about Bitcoin’s long-term prospects and are willing to pay more to position themselves for a potential upside by buying OTM calls.
