• The crypto industry is currently showing signs of a major recovery, with Bitcoin risk reversals trading in positive territory and calls being more expensive than puts across multiple tenors.
• QCP Capital’s analysis points out that this bullish sentiment is a result of the macro market and a slight recovery in the economy.
• BitStarz Player Lands $2,459,124 Record Win, indicating that the crypto industry may be in the midst of a major upswing.
The cryptocurrency market has undergone a drastic change in recent times. An analysis by QCP Capital has revealed that the options market in its present state makes the crypto industry seem as though a major crisis such as the shutdown of crypto exchange FTX after filing for bankruptcy, never happened.
The crypto market has come back to life, as evidenced by Bitcoin (BTC) risk reversals trading in positive territory for the past week. This means that calls (buys) have been more expensive than puts (sells) across multiple tenors, which is highly unusual for the sector as BTC typically has a persistent put skew. This is mainly due to miner/treasury hedging activities.
The trading desk at QCP Capital has noted that the sentiment in the cryptocurrency market has shifted from bearish to bullish as a result of the macro market and a slight recovery in the economy. This has been reflected in the pricing of options, with puts trading at higher volatility than calls.
The bullish sentiment has been further highlighted by the recent record win of a BitStarz Player, who walked away with a staggering $2,459,124. This indicates that the crypto industry may be in the midst of a major upswing, with the options market providing a further glimpse of the changing landscape.
As the crypto market continues to evolve, investors should keep an eye on the options market to better understand the sentiment of the cryptocurrency industry. With the current state of the market indicative of a major recovery, the future looks bright for the crypto industry.