According to Bloomberg, traders are starting to protect themselves from a possible drop in Bitcoin’s price. They are buying contracts that allow them to sell at a specific price in the future. These contracts are called “puts.” Traders are particularly interested in puts with strike prices of $95,000 and $100,000. This suggests that they are cautious about Bitcoin’s price going down.
Experts believe that traders are preparing for a potential correction in Bitcoin’s price. Despite the high interest in puts, there are still more open positions for contracts that bet on Bitcoin’s price going up. The price of Bitcoin recently surpassed $100,000, driven by positive news about the cryptocurrency market.
Traders are also taking leveraged bullish bets, showing their confidence in Bitcoin’s future price. However, some experts warn that the high funding rate could indicate an overheated market and may lead to a price pullback in the future.
Overall, the market sentiment remains optimistic, with many traders expecting Bitcoin’s price to continue rising.
Vocabulary List:
- Traders /ˈtreɪ.dɚz/ (noun): Individuals or entities that buy and sell financial instruments.
- Contracts /ˈkɒn.trækts/ (noun): Legal agreements between parties that outline the terms of a transaction.
- Protect /prəˈtɛkt/ (verb): To keep safe from harm or loss.
- Cautious /ˈkɔː.ʃəs/ (adjective): Careful to avoid potential problems or dangers.
- Optimistic /ˌɒp.tɪˈmɪs.tɪk/ (adjective): Hopeful and confident about the future.
- Correction /kəˈrɛk.ʃən/ (noun): A reversal of the previous trend in the market often leading to price drops.
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