Bitcoin's Rollercoaster Ride: Investors Brace for Big Moves

Bitcoin investors are on alert following a dip from its near-record high, with significant volatility expected by December 27 when a large batch of options expires. Market hedging indicates anticipation of substantial price changes, fueled by recent profit-taking and potential political influences.

Bitcoin investors are preparing for potential significant movements as the cryptocurrency dips from its recent high, approaching $100,000. Recent options activity suggests a shift in market sentiment, indicating hedging against potential downside risks.

This turbulence comes after Bitcoin rocketed by 120% this year, buoyed by pro-crypto policy statements from U.S. President Donald Trump and other lawmakers. Market dynamics ahead of the December 27 options expiry may dictate future price trajectories.

Nick Forster of Derive highlights a perceptible shift in the call-put skew index, reflecting potential investor caution. While the market braces for changes, longstanding holders have been offloading their bitcoin holdings, pointing to significant ongoing profit-taking in November.

(With inputs from agencies.)