Important takeouts:
The Bitcoin options market shows extreme fear, but the historic pattern shows the potential for a major rebound.
Global economic pressure trade tariffs from the US have had a negative impact on traders’ sentiment.
Bitcoin (BTC) has fallen below $113,000 for the first time in more than two weeks, causing an astounding trader and a $113 million liquidation in leveraged long positions. The sharp decline followed a record high of $124,176 on Thursday, raising questions about whether the bull market has ended as the macroeconomic environment grows more uncertainly.
SEC research and corporate AI disappointment
Bitcoin’s price adjustments accelerated after reports that the Securities and Exchange Commission (SEC) is allegedly investigating fraud and stock manipulation at Alt5 Sigma, a company that recently partnered with US President Donald Trump’s global free finance in a $1.5 billion transaction.
World Liberty, listed by President Donald Trump as “co-founder honor,” has raised about $550 million through two public token sales. In June, Trump revealed he made $57.4 million from his shares in World Liberty Financial, but Eric Trump is scheduled to join the Alt5 Sigma board of directors.
Cryptocurrency investors also responded to a 1.5% drop in the NASDAQ 100 after a MIT Nanda study, based on 150 corporate interviews and 300 public artificial intelligence deployments.
The US imports tariffs and weakens trust in the Fed
Another factor that promoted risk aversion was the new 50% import duties in the US on 407 additional aluminum and steel-containing products. The affected items include everyday items such as auto parts, plastics and specialized chemicals, urging economists to raise concerns about supply chain disruptions and rising consumer prices.
According to CNBC, UBS Investment Bank raised its gold price forecast to $3,700 by September 2026. UBS strategists hope gold prices will come from subtrend economic growth, policy easing in the Federal Reserve, and low dollar. Investors also support the outlook as concerns about the US budget deficit and questions about the Federal Reserve’s independence.
Amid growing fears about economic contraction and the potential impact on businesses related to Trump’s global freedom finance, demand for downside protection has skyrocketed in the Bitcoin derivatives market. The BTC option was bareshed on Friday and continues to deteriorate, reflecting growing investor attention.
The 30-day Bitcoin option Delta Skew (Put-Call) skyrocketed to 12%, reaching its highest level in over four months. Under neutral conditions, this indicator typically vibrates between -6% and +6%, reflecting the balanced pricing of call (purchase) and put (sell) options. Levels above 10% indicate extreme fear, but rarely last.
Related: Bitcoin ‘Sweeping Liquidity Zone”, but increasing open profits hinting at BTC Recovery
On April 7th, when Bitcoin fell below $74,500 for the first time in five months, a previous spike against 13% delta skew occurred. The risk-accepting investors earned 40% the following month as Bitcoin was repeated to $104,150 by May 8th.
There is no evidence that Bitcoin’s Bull Run has ended. Trader fear often monitors reasonable expectations. In fact, cryptocurrencies could benefit further from potential outflows in the stock market, suggesting that current turbulence will not negate the market’s long-term bullish trends.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
