Bitcoin price hits $32K but derivatives metrics still show signs of weakness
There’s no doubt that the last couple of months have been bearish for (BTC), but throughout this entire period, derivatives indicators have been relatively neutral. This could be because cryptocurrencies have a strong track record of volatility, and even 55% corrections from all-time highs are expected.
After two months of struggling to sustain the $30,000 support and finally losing it on July 20, the futures premium and options skew turned bearish. Even PlanB’s stock-to-flow valuation model was not expecting prices below $30,000 for the current month. The model uses the stock-to-flow ratio, which is defined by the current number of Bitcoin in circulation and the yearly issuance of newly mined Bitcoin.
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