Cryptocurrencies
Where Is Bitcoin Heading? Look at the Options Market
- Demand for call options to buy Bitcoin have climbed this month
- Call option implied volatility trends higher relative to puts
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With Bitcoin settling back in a narrow trading range after a mid-March rally, investors searching for clues as to where it is headed next may want to take a look at what the options market is signaling.
Demand for call options that give the right to buy the cryptocurrency in the future has climbed this month as Bitcoin’s spot price rallied. Bitcoin edged lower for a third day to around $45,900, and is up about 10% in March.