Bitcoin (BTC) has been trying to break the $60,000 resistance for the past 23 days. Generally, investors don’t seem too worried about this as they consider it a healthy consolidation period, and even recent analysis from JPMorgan Chase estimates that BTC price will reach $130,000.
Even as most investors expect Bitcoin price to rise above $100,000, derivatives data shows $2.52 billion worth of ultra-bearish options from the $40,000 to $50,000 range?
At the moment, there are multiple signals that the crypto market is overheating. There is an 11% BTC price premium in South Korean markets, and this week Cointelegraph reported that there are 100 cryptocurrencies with a $1 billion market capitalization.
As a comparison, just two months ago, this figure stood at 51. The combined altcoin market capitalization surged to $800 billion from $450 billion in 60 days. Thus, buying protective put options makes sense, especially during these relatively low volatility periods.
Bitcoin 30-day historical volatility. Source: TradingView
Even though a 60% average historical