Bitcoin's Slide Has Traders Hedging Against a Drop to $70,000
Bitcoin (BTC-USD) options are showing that investors and traders are hedging against a decline in the cryptocurrency to levels last seen just after election day. The open interest for put options with a strike price of $70,000 is the second highest among all contracts expiring on Feb. 28. A total of $4.9 billion in open interest is set to expire on Friday.
- As market volatility continues to increase, it's becoming clear that institutional investors are taking a more proactive role in managing their exposure to cryptocurrency prices.
- Will this trend towards risk management by institutional investors be enough to stem the decline in Bitcoin's value and restore investor confidence in the asset class?