Analysis: Bitcoin 30-Day Option Delta Skew Skyrockets, Indicating Market is in Extreme Fear
BlockBeats News, August 20th, according to Deribit data, the Bitcoin 30-day option Delta skew (put-call) surged to 12%, reaching its highest level in over four months. In a neutral scenario, this indicator usually fluctuates between -6% and +6%, reflecting the balanced pricing of call (buy) and put (sell) options. Levels above 10% indicate market extreme fear, but such situations rarely persist.
Previously, the above indicator soared to 13% on April 7th, when Bitcoin fell below $74,500 for the first time in five months. Subsequently, risk-taking investors gained a 40% return over the next month, with Bitcoin rising to $104,150 on May 8th.
Cointelegraph analysis suggests that there is no evidence indicating the end of Bitcoin's bull market. Traders' fear often exceeds rational expectations. In fact, this cryptocurrency may even benefit from potential outflows from the stock market, indicating that the current turmoil will not counteract the market's long-term bullish trend.
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