While the consensus is that that event, coupled with the strong inflows into the U.S.-based exchange-traded funds (ETFs), implies a supply-demand imbalance and potential for a continued move higher, some traders have started to position for a sharp decline. They have begun snapping up bitcoin puts, or options to sell, at strike prices well below the going market rate because perpetual funding rates point to a market that’s overheated and may witness a correction, a drop of more than 10%.
Source: https://www.coindesk.com/markets/2024/02/28/crypto-traders-hedge-bitcoin-rally-after-40-rise-in-4-weeks-options-data-show/?utm_medium=referral&utm_source=rss&utm_campaign=headlines