Bitcoin Merchants continue to cope with the volatility of the drawbacks, hiding their upward exposure despite recent positive signals, such as the drop in rates of the federal reserve, the CEO of Deribit, the CEO of deribit, Crypto derivatives told Coindesk, told Coindesk.
Earlier this week, the United States Fed reduced interest rates by 25 base points and reported 50 additional relaxation points scheduled for the end of the year. The Securities and Exchange Commission (SECOND) Unveiled a new generic rating standard for Crypto ETF, which is defined to speed up the approval process.
Meanwhile, the Drabit Doli index, which measures the implicit volatility of 30 days, remains moderate at around 24%, the lowest in two years.
Historically, the bullish feeling is strong in such situations, which means that the purchase options – betting on BTC price increases – become more expensive than installation options, which offer price reductions. However, on deribit, the power options continue to be negotiated to a bonus in all time.
“The biases of all time remain dishes,” said Strijers. “We continue to see the request for put to rub shoulders with an exposure, while the crushing flows of the calls put pressure on the top.” Deribit is the greatest exchange of crypto options in the world, representing more than 80% of world activity.
SCKEW options measures the difference in implicit volatility between call and put options for given expiration. A negative bias indicates the lowering feeling, investors expecting a drop in prices; A positive bias reflects upward expectations.
Currently, the biases of seven, 30, 60 and 90 days are slightly negative, with the 180 -day bias neutral, according to the amberdata data source.
This indicates persistent concerns concerning a possible correction of the BTC.
Investors who bought PUT can be concerned about the fact that the relaxation of the Fed has already been taken into account on the market before the decision and that a deterioration in economic prospects could reduce the demand for risky assets, such as Bitcoin.
“After the Fed’s decision, part of the previous optimism has faded. The market now seems to wait for the next catalyst – whether macro or cryptocurrency – to break the dead end and push the positioning of the option of its current balance between prudence and optimism,” said Strijers.
Sidrah Fariq, global retail and commercial development manager at Deribit, said that the persistent put bias represents the maturity of the market.
“In a certain sense, the BTC options behave more like S&P index options – a sign of maturity, but also prudence of the market,” said Fariq.
In addition, traders writing covered calls – selling purchasing options against their assets to collect bonuses – which can contribute to put bias, especially in the longer term options. This strategy generates additional income but can increase potential.
The covered call has become a popular strategy among BTC, ETH and XRP merchants in recent years.
