Bitcoin Options Signal Traders Bracing for a Long, Harsh Crypto Winter
Bitcoin options markets are signaling that traders expect the world’s largest cryptocurrency to stay locked in its current price band, even after a bruising fourth-quarter slide that erased more than $1 trillion from the digital-asset landscape.
On Friday, Bitcoin the biggest crypto asset by market capitalization fell as much as 4.4% to $88,135, slipping below the midpoint of the $80,000 to $100,000 range where it has hovered for the past three weeks. Bitcoin alone makes up nearly 60% of the entire crypto market’s valuation.
Options positioning reinforces the idea that traders are bracing for muted movement in the near term. Open interest for contracts expiring in late December has climbed far above interest in longer-dated…
