#binance #hype #zec #near
05/08/25 06:25 UTC-04

Crypto Market Loses Bullish Momentum: Option Signals Turn Cautious

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Trading Crypto Market Loses Bullish Momentum: Option Signals Turn Cautious

Crypto Market Loses Bullish Momentum: Option Signals Turn Cautious

The cryptocurrency market is showing alarming shifts in investor sentiment. According to analytics platform Amberdata, the 180-day implied volatility skew on Deribit has fallen to zero, signaling a transition from long-term bullish to neutral expectations. This indicator, which reflects the pricing difference between call and put options, was last at similar levels in early 2022, just before the start of a prolonged bear market.

Key Changes in the Options Structure:

Griffin Ardern, head of options trading at BloFin, stated:

“The options market no longer believes in a sustained uptrend for Bitcoin. The probability of new highs in the coming months has significantly decreased.”

Notable red flags:

  • Disappearance of the call option premium, indicating weakening bullish sentiment.

  • Rising demand for protective put options after BTC recently fell 4%.

  • Increased use of the "covered call" strategy, further pressuring call option prices.

Macro Factors Adding Pressure:

This shift is happening against the backdrop of challenging macroeconomic conditions:

  • Inflation risks:

    • Core CPI continues to rise

    • New tariffs from the Trump administration could push inflation to 3.4% in H2 2025

  • Federal Reserve Policy:

    • Interest rates remain at 4.25%, limiting liquidity inflows

  • Real sector struggles:

    • Ongoing supply chain disruptions are pushing prices up

    • Retailers are passing increased costs to consumers

    • A delayed, wave-like rise in prices is expected in the coming months

Outlook & Key Events This Week:

JPMorgan analysts warn of potential inflationary pressure intensifying in the near term.

Key economic indicators to watch:

  • August 6: ISM Non-Manufacturing PMI

  • August 8: Consumer Price Index (CPI) for July

  • August 9: Producer Price Index (PPI) report

Conclusion: A Time for Caution

The data suggests the market is entering a new phase:

  • The long-term bullish trend has faded

  • Institutional investors are adopting more defensive positions

  • Macroeconomic uncertainty is dampening risk appetite

Experts note that the current situation mirrors early 2022, when similar shifts in option structures preceded a prolonged correction. Investors are advised to review strategies and increase portfolio protection.

See also: "Researcher Amr Taha Reports Panic Selling by Retail Traders on Binance"

#Crypto Market #Analitycs

Editor: Godfrid Brower
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