Bitcoin stabilizes after plunge, but trader sentiment remains pessimistic
The price of bitcoin has recovered after a significant decline observed in the cryptocurrency market last week. The coin has risen above the $71,000 mark again, which may indicate a stabilization of the situation. However, an analysis of data on derivative financial instruments indicates that professional traders are still extremely cautious about the prospects for further growth.
Despite the fact that the BTC exchange rate has recovered, the trading volumes of bitcoin options remain low, which indicates that market participants are in no hurry to bet on the continuation of the rally. In addition, the spread between call and put option prices also remains quite wide, reflecting a high level of uncertainty.
Thus, although the situation in the bitcoin market appears to have stabilized on the surface, data on derivative instruments indicate persistent risks. Professional traders are not yet fully prepared to believe in the sustainability of the upward trend, so they remain cautious. Probably, a longer period of consolidation of the cryptocurrency rate will be required for investors' full confidence to be restored.