Bitcoin's Upside May Be Capped
Some experts believe that Bitcoin's upside is capped due to options data and market maker activity suppressing rallies, despite a long-term bullish outlook.
Bitcoin has stabilized after a tumultuous event last week, which triggered the worst cascading liquidations in crypto's 16-year history. According to CoinGecko data, Bitcoin bounced on Monday but has since slowed, trading at around $113,500, down 1.5% over the past 24 hours.
Heightened bearish activity during last week's sell-off led to an increase in put options expiring on October 31, according to Hendrik Ghys, founder of Thalex Global.
Implied volatility, a key metric reflecting market expectations of future price swings, has repriced downward to the low 40s in the short term and around 45% for longer horizons.
The long-term outlook for Bitcoin remains bullish.
Author's summary: Bitcoin's upside may be capped due to market activity.