CF Benchmark: Options Traders Expect a Short-Term Price Adjustment for Bitcoin

According to CF Benchmarks' analysis of Chicago Mercantile Exchange (CME) bitcoin futures and options, options traders expect a short-term price correction for bitcoin, as investors are ready to pay a premium for short-term downside protection despite yesterday's weak U.S. CPI inflation report. CF Benchmark analysts said that despite Bitcoin breaking above the $66,000 mark yesterday, "implied volatility remains higher for out-of-the-money puts compared to calls," in addition to the volatility curve between long-term puts and calls being "flatter " and slightly skewed for call options, suggesting that investors are more optimistic about Bitcoin's long-term prospects.