For Bitcoin and other cryptocurrencies, May was the cruelest month.
Prices have recovered from the lows, but investors remain cautious.
Genesis Volatility Newsletter said “puts” outnumber “calls” in the option market, creating an “interesting opportunity” for gutsy investors willing to buy the dip in Bitcoin’s price.
A “put” option gives the holder the right to sell while a “call” secures the right – but not the obligation—to buy at a future date. Option volume is down from its previous high, suggesting the market has calmed—at least for now.
However, option traders have priced in “spot price consolidation” and this suggests the market won’t quickly roar back but will instead trade within a narrow range in the immediate future.