Bitcoin's Upside May Be Limited
According to some experts, Bitcoin's potential for growth may be capped due to options data and market maker activity suppressing rallies, although the long-term outlook remains positive.
Following a tumultuous event last week, which triggered the worst cascading liquidations in crypto's 16-year history, Bitcoin has entered a period of relative calm. After a bounce on Monday, the momentum has slowed, with Bitcoin trading at around $113,500, down approximately 1.5% over the past 24 hours, according to CoinGecko data.
Heightened bearish activity during last week's sell-off has led to a significant increase in put options expiring on October 31, as noted by Hendrik Ghys, founder of Thalex Global, in a tweet. Ghys also mentioned that implied volatility, a key metric reflecting market expectations of future price swings, has decreased to the low 40s in the short term and around 45% for longer horizons.
Implied volatility has repriced downward to the low 40s in the short term and around 45% for longer horizons.
Author's summary: Bitcoin's growth may be limited due to market factors.