How Bitcoin Options Traders Are Positioning Amid the Crypto Market Rout
Bitcoin extended weekend losses on Monday, triggering one of the largest liquidation events this year. Options traders are now positioning with a bearish skew in anticipation for a continuation of the downtrend.
The top crypto fell less than 4% on Monday, but the resulting liquidation cascade was the biggest this year, wiping out roughly $1.65 billion in longs and $145 million in shorts.
Despite the scale of the recent fallout, implied volatility, which tracks the future expectations of options traders, showed little change and remains muted, Adam Chu, chief researcher at GreeksLive, told Decrypt.
There was, however, a significant uptick in put-buying activity among options traders after the crash, according to experts who…
