Bitcoin Options Traders Signal Possible Further Downside After $1.65B Long Liquidation

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As reported by Coinotag, Bitcoin options traders are pricing in further downside risk following one of the year’s largest long liquidations, which wiped out approximately $1.65 billion in long positions. The market now shows a bearish skew, with increased put-buying and elevated 1-week and 1-month put-call delta skew, indicating heightened demand for downside protection. Despite the large liquidation, implied volatility remained muted, with experts citing Fed-driven 'sell-the-news' dynamics and mixed cross-asset performance as contributing factors.

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