Here’s What Investors Think About the BTC Price Outlook Right Now, According to Bitcoin Options Markets

cryptonews.com:

Bitcoin has tried and failed to break and hold above the $25,000 level now for five out of the last six days. Some technicians think that this isn’t necessarily a bad thing, as the world’s largest cryptocurrency by market capitalization is forming an ascending triangle structure that could proceed an explosion higher towards the next major resistance area around $28,000.

But others are worrying that this year’s rally that has seen the BTC price already increase close to 50% may be stalling. Pricing in Bitcoin derivatives markets is one way to gauge how investors feel on the outlook for BTC, as well as towards its potential for volatility. Here’s what options markets are saying right now…

According to the widely followed 25% delta skew of Bitcoin options expiring in 7, 30, 60, 90 and 180 days, investors are currently roughly net neutral in their outlook for the Bitcoin price. According to data provided by crypto analytics firm The Block, all five 25% delta skews are close to zero, up substantially from last year’s immediate post-FTX collapse lows, but also down slightly from highs printed earlier this year in the year.

The 25% delta options skew is a popularly monitored proxy for the degree to which trading desks are over or undercharging for upside or downside protection via the put and call options they are selling to investors. Put options give an investor the right but not the obligation to sell an asset at a predetermined price, while a call option gives an investor the right but not the obligation to buy an asset at a predetermined price. 

A 25% delta options skew above 0 suggests that desks are charging more for equivalent call options versus puts. This implies there is higher demand for calls versus puts, which can be