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>>Bitcoin's price surge is facing selling pressure from institutional investors using options contracts.

Bitcoin's price surge is facing selling pressure from institutional investors using options contracts.

crypthub

1 day ago

Bitcoin Price Correction

Bitcoin's price recently dropped to approximately $110,000, following a prior rally that established a new all-time high of $126,198.17. This correction comes amid renewed concerns about the US-China trade war. The market experienced a 7.54% decline in the last 24 hours, accompanied by a significant surge in trading volume.

Institutional Investor Behavior

Data from the Bitcoin Options market reveals a cautious approach from institutional investors during the recent price surge. Instead of chasing the rally, they opted to secure profits and mitigate potential losses. Implied volatility remained relatively stable, which is atypical for such a substantial price increase.

Options Market Signals

Strong demand for put options persisted even during the height of the rally, demonstrating that large players were effectively limiting upside. The put-call ratio exceeded 1.0, further indicating a hedging strategy employed by institutional traders. This cycle demonstrates a shift toward institutional discipline.

Market Maturity and Trading Volume

The Bitcoin market’s current behavior is characterized by institutional funding and the emergence of crypto treasury companies, contributing to greater market maturity. The recent price pullback has spurred increased market activity, with daily trading volume rising dramatically.