Crypto Wobbles, with more ‘Puts’ than ‘Calls’; Dollar Ticking Down – Newsweek

Crypto Wobbles, with more ‘Puts’ than ‘Calls’; Dollar Ticking Down – Newsweek

CryptoCorner

For Bitcoin and other cryptocurrencies, May was the cruelest month.

Prices plunged after a series of tweets from Tesla CEO Elon Musk and increased scrutiny from governments worldwide.

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.

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“While a number of more negative tweets from Elon Musk contributed to the decline [in cryptocurrency values], the main cause has been the increasingly negative tone from authorities across multiple countries towards crypto-assets,” Jim Reid, a strategist for Deutsche Bank in London, said in a research report. In the photo, a woman with a umbrella passes a
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