Nick Forster, founder of decentralized options protocol Derive, said the so-called bullish-bearish skewness index for Bitcoin expiring on December 27 has dropped sharply by 30% in the past 24 hours as market participants shift to more protective strategies. The bullish-bearish skewness reflects market sentiment and refers to the difference in implied volatility between call options and put options. Despite the decline, the index still shows that there are more call options than put options in the market.
According to Forster, by December 27, there is a 68% probability that Bitcoin will fall 16.03% to $81,493 or rise 19.9% to $115,579. However, the probability of a larger move in Bitcoin (a drop of 29.49% to $68,429 or a rise of 41.83% to $137,645) is smaller, at about 5%. Derive data also shows that the probability of Bitcoin reaching $100,000 has risen from 34% last week to 45%, and the probability of exceeding $150,000 is 4%. (reuters)