Options traders are pulling back their bullish bets on Bitcoin (BTC) as a Jan. 10 deadline to approve spot exchange-traded funds (ETFs) approaches.
Market data shows that “call” options expiring in one week have fallen off from heights seen in November and December. Call options are a bet on a future price increase.
The drop off in call options shows that traders are taking a more cautious approach to the largest cryptocurrency ahead of an expected decision by the U.S. Securities and Exchange Commission (SEC) on whether to allow spot Bitcoin ETFs.
Market observers say that professional traders appear to be moving into a wait-and-see mode ahead of the Jan. 10 decision by the SEC.
Other analysts warn that Bitcoin’s price, which has risen 160% in the last 12 months to just under $44,000 U.S., could drop once the SEC makes its ETF decision known publicly.
However, there has not been a noticeable rise in “put” options among traders. Put options are a bet that a price will move lower in the near-term.
Speculation surrounding the Bitcoin ETFs has reached a fevered pitch among retail investors after the website TechCrunch reported that the SEC plans to approve more than one spot Bitcoin ETF.
However, some analysts caution that the SEC could reject all of the spot Bitcoin ETF applications it has received as it has done in the past.
