Analyst: Bitcoin Consolidates, IBIT and Deribit Options Markets Show Signs of Anticipated Correction

Odaily Planet Daily reports that CoinDesk analyst Omkar Godbole wrote that "Since Bitcoin ($BTC) hit a new all-time high of over 110 thousand USD last week, its price has basically been consolidating sideways. The weakening upward momentum is accompanied by signs that market participants' bullish sentiment toward options related to BlackRock's spot Bitcoin ETF (IBIT) is gradually fading.

This trend is clearly reflected in the one-year put-call skew. This indicator reflects the market's volatility risk pricing of put options (used for downside protection) relative to call options (representing bullish bets). A negative value of this indicator usually indicates a bullish market, while a positive value shows market concerns about downside risk.

The one-year option skew for IBIT has rebounded from a four-month low of -3.8 two weeks ago to near zero. This means that IBIT option traders are no longer actively betting on further rallies through options. Perhaps they expect a market correction.

Similar sentiment also appears in the options market on the Deribit platform. According to Amberdata's data, the short-term call option skew has weakened, meaning the prices of call options and put options expiring in the next two weeks are converging." (CoinDesk)