A large bet of Bitcoin (BTC) options crossed the band on a deribit while the first quarter ended on Monday, revealing the lowering feeling of the merchant behind the move.
The so-called Block Trade brought a bonus of more than $ 1 million for $ 1,180 contracts from the Put option of $ 70,000 expiring on April 25, according to data followed by Amberdata.
A sale option gives the buyer the right, but not the obligation, to sell the underlying assets at a predetermined price on a later date. A PUT buyer is essentially in the market, in this case, anticipating a price drop to less than $ 70,000 compared to the current $ 84,000.
A block trade is a significant and negotiated private transaction carried out outside the public market, generally by institutions, to avoid affecting the market rate.
Other notable transactions included a propagation of Put ratio, with long positions in the places of $ 75,000 and the double short positions in the $ 70,000; And a reversal of risks, involving a long position in the call of $ 90,000 and a short position in the $ 70,000, as noted by the founder of Pelion Capital, Tony Stewart.
The flower flow in the Put of $ 70,000 follows purchases of sales options expiring on April 4 in the range of $ 78,000 to $ 85,000 last week and increased request for the Put of $ 76,000 expired on April 25.
In general, the BTC puts are negotiated with a premium for calls, presenting a feeling of decline at the expiration of May-End, as evidenced by the negative values of risk inversions.
The PUT bias offering downward protection probably reflects the anxiety of investors surrounding the announcement of the expected reciprocal prices of President Donald Trump on Wednesday. An aggressive decision could weigh on risk assets, including cryptocurrencies.
