Despite an 11.4% correction in Bitcoin’s price last week, BTC futures and options data show that professional traders’ sentiment was not impacted.
The recent price correction took many by surprise and led to the largest liquidation since the FTX collapse in 2022.
Experts point to reduced liquidity as the reason for the recent spikes in volatility, but BTC futures and options data suggest otherwise.
Similar instances in the past show that not every 10% Bitcoin price crash is the same, with different impacts on futures premiums.
The recent correction in August revealed distinct dissimilarities from previous instances, with the futures premium quickly returning to a neutral-to-bullish position.
Options markets also confirm a lack of bearish momentum, with no signs of professional traders adopting a bearish stance.
While this doesn’t guarantee a swift return of BTC to previous levels, it reduces the likelihood of an extended price correction.
