Big investors are betting on slump after halving

Many people expect that the next bitcoin halving will be the light at the end of the tunnel, when the cryptocurrencies will return to the sun. The remuneration for the extracted block will be halved and the natural supply on the market will also be halved. However, those who trade Bitcoin-tied options think completely differently.

Bitcoin halving: The reward for mined block is reduced, the price with it?

The biggest question remains, what role the natural market offer plays. What resources miners have and if they can (and how long) to mine in minus.

Those who trade Bitcoin-tied options think the price of cryptocurrency and digital gold will fall after halving.

Options are a relatively new phenomenon in the cryptocurrency world, which is used only by big players. However, it is a very important indicator of how prices can evolve. Its significance is comparable to the Short / Long ratio, but they work rather with a long-term framework.

Options are simply purchased rights to buy something in the future. When you buy an option, you get the right, but not the obligation, to buy or sell something sometime in the future. The price is fixed and written from the beginning.

The proportion of those who bought the right to sell at today’s price is steadily increasing. It ranges between 45 and 61%. This indicates a great fear of falling.

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