While Bitcoin and Ethereum prices remain volatile, there are signs that traders are becoming less bearish. According to a report by crypto analytics firm Kaiko, the put-call ratio for both major cryptocurrencies has declined in June after a surge in May.
The put-call ratio is a key metric used to gauge market sentiment. It compares the trading volume of put options (bets on prices falling) to call options (bets on prices rising). A rising ratio indicates more bearish sentiment, while a falling ratio suggests a shift towards optimism.
In May, anxieties ran high after Bitcoin failed to break above $72,000 and prices dipped to $56,500. This fear was reflected in the put-call ratio, which rose from 0.2 in April to over 1 in May.
However, with some recovery in June, the ratio has retreated to around 0.5, suggesting a decrease in bearish bets. This trend highlights a potential shift in sentiment among Bitcoin and Ethereum traders. While prices haven't fully recovered, the decline in the put-call ratio indicates that traders may be less fearful of a major price drop in the near future.
June 2024, Cryptoniteuae