Bitcoin trails stocks by most since 2019 as traders get their kicks elsewhere
Bitcoin's performance has lagged behind stocks for the first time since 2019, with bearish sentiment growing among traders. Options volumes for key crypto equities have shifted, indicating a preference for alternative trading derivatives. Rising interest rates are seen as a primary factor affecting crypto markets, as investors explore other opportunities.
- ▪Options volumes in key crypto equities are shifting bearish, with put volumes outpacing calls.
- ▪Almost 100,000 puts were likely bought in Strategy, compared to under 37,000 calls.
- ▪Rising interest rates are viewed as a primary catalyst for the recent weakness in crypto markets.
Opening excerpt (first ~120 words) tap to expand
For the first time in weeks, options volumes in key crypto equities like the iShares Bitcoin Trust (IBIT) and Michael Saylor's Strategy are shifting bearish, with put volumes outpacing calls on Tuesday, and more calls being sold than bought in MSTR and IBIT. In Strategy, almost 100,000 puts were likely bought, compared to under 37,000 calls, ThinkOrSwim data show. The most popular contract by volume according to SpotGamma: the 100-strike put expiring June 18 – a bet on new year-to-date lows..The sentiment also extended to options on crypto exchange Coinbase, where more than twice as many calls were sold as were bought on Tuesday.While it's hard to pinpoint one cause for recent crypto weakness, investors point to several possible reasons: Strategy selling its first bitcoin in four years on…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Investing.
Discussion
0 commentsMore from CNBC — Investing
