Bitcoin's options markets data shows increased signs of rising bearish sentiment activity in the range of $29,000 – $30,000.
Bitcoin has been on a falling streak for the past seven weeks owing to the broader market inflation risks and other impacting systematic risks pertaining to the crypto market.
With increased correlation with the US Equities market and continuous interest rate hike moves from the FED impacted the asset to nearly crash to o$24,000 last week.
Research notes from Delphi Digital – a crypto research firm, have revealed a put/call ratio at 0.72, the highest for the past 12 months, thereby indicating a bearish sentiment from the data reading.
FYI, the put/call ratio measures the ratio of put buying relative to the calls in the options market. A relatively higher put/call ratio indicates that the market players are betting on the continuation of the bitcoin sell-off; thereby, they are hedging their portfolio against a potential downward move in the market.
According to Investopedia, "A put is an options contract that gives the owner the right, but not the obligation, to sell a certain amount of the underlying asset, at a set price within a specific time".
Presently, more than 63,000 bitcoin worth of open interest option contracts is poised to expire on May 27.
As of today, Bitcoin's price has increased by 3.31% in the past 24 hours, while its dominance has increased by 0.14% to 44.83%.
Even though Bitcoin and various other coins in the market have started recovering from the past week's crash, experts have a perspective of the unlikeliness of V-Shaped recovery in the market.
Since Bitcoin, Ethereum, and the rest of the altcoins are moving in alignment with the US equities market, the bearish sentiment from Wall Street is likely to spill over to the correlated crypto markets as well. As evident in the recent event of interest rate hike announcement by Jerome Powell by 50 basis points, the market reacted by taking a bearish approach.