Bitcoin: Bearish in the Short Term, Bullish in the Long Term
CryptoNewsTerminal Staff17 May, 2024
Bitcoin: Bearish in the Short Term, Bullish in the Long Term
Bitcoin's options market is giving mixed signals, with traders expressing concerns about a short-term downtrend but remaining optimistic in the long term. According to a report by crypto benchmark index provider CF Benchmarks, early-week U.S. inflation data has strengthened the case for bitcoin's long-term bullishness. However, traders are assigning a greater risk premium to downside risk in the shorter term. This is reflected in the higher implied volatility of CME's short-term out-of-the-money put options compared to call options. However, traders appear more bullish when it comes to longer-term options. Despite the short-term bearishness, the report suggests that traders are still confident in bitcoin's long-term growth potential. This is supported by the increasing popularity of bitcoin as a store of value and a hedge against inflation.
