InvestAnswers: ‘Smart Money’ Is Not Bearish On Bitcoin (BTC)
According to a popular crypto analyst the ‘smart money’ is not betting on the price of Bitcoin (BTC) to fall further down.
In a recent video update, the host of InvestAnswers looks into a chart showing a graph of existing option contracts on the leading digital asset up to March 25th, and says:
“The max pain is $42,000, and the heavy bets are to the right, and that means lots of call option buying, and in excess of where we are today.
When you hear people on YouTube calling for $10,000 Bitcoin, that’s not where the smart money is placing their bets.”
According to the host of InvestAnswers there are only 21,343.4 BTC put option contracts, while the number of call option contracts is 34,811.1.
BTC Call options are financial contracts that give the option buyer the right but not the obligation to buy a Bitcoin at a specified price within a specific time period, while a put option gives the holder the right to sell the underlying asset at a specified price on or before expiration.
In other words, call buyers benefit from price increases while put buyers benefit from declines in prices.
The analyst notes that put/call ratio of 0.61 is a positive sign for Bitcoin’s future price, which he sees bullish.
“That is extremely bullish compared to where we were before.”
At the time of writing, BTC is trading at $38,318, up 2.83% on the daily chart, but down 5.15% on the weekly time frame.
