The recent decline in the value of bitcoin has sparked speculation that the digital currency may be reaching a bottom. A skew is the margin spread of volatility between an option’s call and put.
Skews have been steadily climbing back to zero, implying a bottom may have been reached. Many analysts believe that the recent rise in option prices for bitcoin contracts signals that the price of bitcoin is beginning to stabilize and could soon begin to increase.
Image courtesy: CoinDesk
There are a number of factors contributing to this sentiment, including increased adoption of cryptocurrency by businesses as well as growing demand from institutional investors looking to gain exposure to bitcoin and other digital currencies.
Additionally, many experts believe that government regulation will ultimately lead to greater stability in the market, leading more investors and businesses to feel confident about investing in or using cryptocurrencies.
Overall, there is a growing consensus among analysts and investors that the worst may be over for bitcoin, and that we can expect continued growth in the months and years ahead.
Whether or not this proves to be true remains to be seen, but given the current state of the market and increasing interest from institutional investors, many see good things ahead for bitcoin and cryptocurrencies more generally.