Crypto derivatives are indicating a potentially larger downside for both Bitcoin and Ethereum, as per a recent report. This downward trend, which has been apparent since the end of August, suggests that investors may be expecting further drops in the value of these cryptocurrencies. The report suggests that the increased trading volume in crypto derivatives shows a substantial increase in bearish sentiment among investors.
The report further highlights that the negative skew in Bitcoin and Ethereum options shows that investors are buying more ‘put options’, implying a negative market sentiment. This trend is particularly significant with Ethereum. It also noted a drop in the price of Bitcoin, which has been oscillating around the $10,000 mark for some time now. Ethereum, too, has witnessed a drastic decrease in price, thereby signaling bearish behavior.
This information is critical for the crypto market as it could set the tone for future trading. It is important for investors to be aware of this overall bearish sentiment and its potential impact on their investments. The crypto market is highly volatile and understanding market trends and sentiments can be key to making successful trades. For Bitcoin and Ethereum, the current market sentiment doesn’t seem too positive, and investors need to navigate their decisions carefully.
