Cheap BTC Options, Price Goes Back to $41K!


 "Hmm if we look at the price of BTC it's like flat right?"

Shortly after plunging to $40,300, cryptocurrency king Bitcoin (BTC) climbed back to $41,630 as BTC options now look so cheap that some traders want to take advantage of the same to increase bullish bets.

The fall in BTC prices was followed by investors in Grayscale Bitcoin Trust (GBTC) switching to BTC ETFs where they exited their positions en masse, leaving analysts surprised by the size of the selloff.

Reportedly, over half a billion dollars were withdrawn in the first few days then in the last five days, over $2.2 billion has left the fund due to GBTC having the highest fees of any spot BTC ETF at 1.5%.

Returning to the explanation, options are derivative contracts that allow the buyer to buy or sell the underlying asset at a set price at a later date, while calls give the trader the right to buy and earn a profit or protect the value from the increase in BTC.

Through observation, the implied volatility (IV) of BTC which peaked during the launch of the spot ETF in the United States (US) has decreased to trigger demand for calls at $45,000 and $46,000.

So here it can be seen that the word call buying clearly implies that the call bought may be a standalone trade that risks renewed price fluctuations in BTC and is not part of a complex strategy.

As of this writing, the price of BTC has fallen by 0.77% to $41,311 in the last 24 hours with a market cap of $810 billion further recording a decrease of 2.23% over the last week.