"BlackRock Bitcoin Options Market Sensing Rally Fatigue... A Short-Term Top Signal?"

As Bitcoin (BTC) briefly surpassed $110,000 and has since been moving sideways, there are observations of signs of rally fatigue emerging in the options market.

On the 29th (local time), CoinDesk, a cryptocurrency-focused media outlet, reported, "In the options market based on BlackRock’s Bitcoin spot ETF (IBIT), the 1-year maturity put-call skew indicator has rebounded from -3.8 to near 0. Investors are no longer aggressively chasing the upside through call options."

A similar atmosphere has also been sensed at the digital asset derivatives exchange Deribit. According to Amberdata on the same day, the prices of short-term call and put options have become similar, confirming a balanced sentiment in the market. In particular, there is analysis that bullish bets have decreased in options expiring within two weeks.

As of 8:45 p.m. today, the price of Bitcoin is trading around $108,734. It has remained within a range without a clear trend reversal since recording an all-time high last week.

Meanwhile, a call option is the right to buy a specific underlying asset at a predetermined strike price. The buyer of a call option can exercise the option at maturity if the market price of the underlying product is higher than the predetermined strike price, thus profiting by the difference. Conversely, a put option is the right to sell an asset at the predetermined strike price.

Also, skew refers to the difference in implied volatility between call and put options. A positive skew means that call options dominate over put options, while a neutral or near-zero skew indicates that demand for bullish and bearish bets is balanced.