Bitcoin is currently consolidating within a price range of $65,000 to $73,000 following a period of extreme volatility earlier this month. Despite the calm in price, the options market is exhibiting heightened activity, with implied volatility for one-month and three-month contracts rising significantly as traders anticipate larger future moves. The open interest in Bitcoin options is rebounding towards levels seen before a major expiry, largely fueled by increased demand for downside protection as indicated by a shift in options skew. This combination of factors suggests an underlying market structure that remains fragile, as hedging activities may amplify price movements.
Bitcoin consolidates between $65K and $73K as options volatility rises
