Despite an 11.4% correction in Bitcoin’s price, BTC futures and options data show that professional traders’ sentiment was not impacted.
The recent volatility in Bitcoin’s price is not uncommon, as the cryptocurrency has historically experienced price swings of 10% in just a few days.
Reduced liquidity has been pointed out as a reason for the recent spikes in volatility, but BTC futures and options data suggest that this may not be the case.
Traders should analyze similar instances in the past to assess the impact of the recent drop in Bitcoin’s price.
Bitcoin quarterly futures generally trade with a slight premium compared to spot markets, reflecting sellers’ inclination to receive additional compensation for delaying settlement.
The recent correction in Bitcoin’s price did not significantly dampen the optimism of whales and market makers, as indicated by the BTC futures premium returning to a neutral-to-bullish position.
Options markets also confirm the lack of bearish momentum, with no signs of professional traders adopting a bearish stance.
While this does not guarantee a swift return of Bitcoin to previous support levels, it reduces the likelihood of an extended price correction.