More

    This Ratio Creates Bitcoin Price Upside

    A major thing that anyone who follows Bitcoin notices is how market sentiment can shift seemingly in moments. We’re one Elon Musk tweet away from a bear market, one Tesla earnings report away from a huge bull market. It is about as emotional of a market as you will ever find. The question is: What are metrics that we can use to quantify where we are on this emotional spectrum?

    One thing that I like to keep an eye on is the ratio of how the calls and puts are trading in a specific month, let’s call it the “yield and volatility ratio.” Basically, it considers the distance like-priced calls and puts are from the current price of spot bitcoin and divides the difference in price between the calls and the spot bitcoin price by the price between the puts and the spot bitcoin price. How high or low this metric goes is determined by many things, but primarily by the implied volatility of the options skew and the futures yield curve — giving the metric its name. This ratio can give a very good idea of how the market is currently forecasting the price of bitcoin. What’s the sentiment? Is bitcoin about to moon? Or is the run over, and we should prepare for a three-year bear run?

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Atlantis Exchange Received 30,000,000 Advanced Bitcoin as Liquidity

    SEATTLE, WA, May 20, 2022 /24-7PressRelease/ — Atlantis Exchange is pleased to announce that a deposit of 30,000,000 Advanced Bitcoin (“aBTC”), a green cryptocurrency...

    These indicators show how the equities sell-off is influencing crypto prices to fall down

    Cryptocurrencies experienced on May 10 a large market crash, losing over 10% in a single day of most of the coins. This is the...

    Xendit Raises $300M to Grow Payments Platform

    Southeast Asia payments platform Xendit closed a $300 million Series D funding round that brings its total investment capital since 2015 to $538 million,...

    Top Cryptocurrency Prices Today, May 20: After crypto crash, Bitcoin, ETH, Solana, ADA, Polkadot, Matic rise upto 6%

    Top Cryptocurrencies of the World Prices Today in India (May 20, 2022): The global crypto market cap recovered 2.87% in the last 24 hours...

    Ethereum to Merge in August as Final Testing Begins

    The Merge is a milestone upgrade that transitions the Ethereum network consensus mechanism from proof-of-work mining to proof-of-stake (PoS). It is a significant step...

    Newsletter

    Subscribe to stay updated.