Could Bitcoin’s Value Drop by $28K Due to 2-Month Low in BTC Futures Premium?

Professional Bitcoin traders are currently favoring sideways price action as BTC futures premium drops and the options delta skew nears 0%. Here are the most important things to know about this trend:

1. BTC futures premium drops: The premium on Bitcoin futures contracts has been dropping recently, indicating that traders are less willing to pay a premium for the right to buy or sell Bitcoin at a specific price in the future. This suggests that traders are less bullish on the short-term prospects for Bitcoin and are instead opting for a more neutral stance.

2. Options delta skew nears 0%: The options delta skew is a measure of the difference in implied volatility between options contracts with different strike prices. When the delta skew approaches 0%, it suggests that traders are not expecting any significant price movements in either direction. This is another indication that professional Bitcoin traders are currently favoring a sideways price action.

3. Sideways price action: When traders favor a sideways price action, they are essentially betting that the price of Bitcoin will remain relatively stable in the short term. This can be seen as a more conservative approach to trading, as it avoids the risk of significant losses from sudden price movements.

In summary, professional Bitcoin traders are currently favoring a more neutral stance on the cryptocurrency, with a focus on sideways price action and a lack of bullish sentiment in futures and options markets. This suggests that traders are taking a more cautious approach to Bitcoin trading, potentially in response to recent market volatility and uncertainty.