Bitcoin’s Rollercoaster: Is the Ride Over or Just Getting Started? 🎢💰

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What to know:

  • Bitcoin has been doing its best impression of a flat tire after soaring to dizzying heights above $110,000 last week. 🚀
  • Market sentiment is shifting faster than a Vogon poetry reading as the put-call skew for BlackRock’s bitcoin ETF options has bounced to zero, indicating that traders are less enthusiastic about bullish bets. 😒
  • Traders on Deribit are showing similar caution, with short-term call options now trading at par with puts, which is a bit like trading a spaceship for a towel. 🛸

Bitcoin has mostly been trading sideways, which is a fancy way of saying it’s been as exciting as watching paint dry since it hit record highs above $110,000 last week. 🎨

The loss of upward momentum is now accompanied by signs of waning bullish sentiment among market participants who are trading options tied to BlackRock’s spot bitcoin exchange-traded fund (ETF). It’s like they’ve suddenly realized that the universe is a vast, uncaring void. 🌌

This is evident from the one-year put-call skew, which reflects how the market prices in volatility risk for put options. It’s like a cosmic scale of fear and greed, where negative values represent a bullish bias and positive values suggest that traders are clutching their wallets in terror. 😱

IBIT’s one-year skew has bounced to nearly zero from the four-month low of minus 3.8 two weeks ago, according to the ever-reliable Market Chameleon. In other words, IBIT options traders are no longer chasing upside via options, which is a bit like giving up on dessert after a hearty meal. 🍰

Perhaps they are expecting a pullback. A similar mood is evident in Deribit-listed options, where the short-term call skew has weakened, meaning calls expiring in the next two weeks are trading at par with puts, according to the data source Amberdata. It’s as if everyone suddenly decided that the grass is greener on the other side of the market. 🌱

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2025-05-29 14:47