The conditions of the cryptocurrency market have changed drastically; according to an analysis by QCP Capital, the options market in its current state makes the crypto industry look like a major crisis, such as the shutdown of crypto exchange FTX after filing for bankruptcy, never happened. Related Reading: Bitcoin Exchange Outflows Reach Highest Value Since FTX Crash, Bullish? Trading desk QCP Capital published observations on the crypto industry, revealing some key points to consider for the coming months. The Crypto Market Comes Back To Life QCP’s analysis points out that Bitcoin (BTC) risk reversals have been trading in positive territory over the past week, which tells us that calls (buys) have been more expensive than puts (sells) since 2021 across multiple tenors. This is unusual for the sector as BTC typically has a persistent put skew, mainly due to miner/treasury hedging activity. The chart below depicts this market behavior and the bullish sentiment impacting the options sector. Put skew drives the price of puts higher and calls lower. This difference in pricing between options is ..
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