“Bitcoin (BTC) Puts Trade at A Premium Across All Time Frames.”, – WRITE: www.coindesk.com
Earlier this Week, The US Fed Cut Interest Rates by 25 Basis Points and Signaled An Additional 50 Basis Points of EASING EASING EASING EASEED by YEAR-ED. The Securities and Exchange Commission (SEC) Univeiled A New Generic Listing Standard for Crypto etfs, WHICH IS SET TO Accelerate the Approval Process.
Meanwhile, Deribit’s DVOL INDEX, WHICH MEASURES The 30-Day Implied Volatytility, Remains Subdued at Around 24%, The Lowest in Two Years.
Historically, Bullish Sentiment Is Strong in Such Situations, Causion Call Options – Bets on Price Increases in BTC However, on Deribit, Put Options Continue to Trade at A Premium Across All Time Frames.
“Skew Across All Time Frames Remains Flat to Negative,” StriJers Explated. “We Continue to See Demand for Puts to Hedge Downside Exposure, While Call Overwriting Flows Are Pressing The Topside.” Deribit is the World’s Largest Crypto Options Exchange, Accounting for Over 80% of the Global Activity.
Options Skew Measures the Implied Volatility Differentnce Between Call and Put Options for a Given Expiration. A Negative Skew Indicates Bearish Sentiment, with Investors Expecting A Price Drop; A Positive Skew Reflects Bullish Expectations.
BTC Options Skew is Negative Across All Time Frames. (Ambrdata/Deribit)
Currently, The Seven, 30, 60, and 90 Day Skews are Slightly Negative, With The 180 Day Skew Neutral, Accounting To Data Source Amberta.
This Indicates Persistent Concerns About A Possible BTC Correction.
INVESTORS BUYING PUTS MAY BE CONCERNED THAT The Fed’s EASING WAS ALREADY FacTored Into The Market Ahead of the Decision and the Deterioringing Economic Outlook Could Redoche Demand.
“After The Fed’s Decision, Some of the Earlier Optimism of Has Faded. The Market Now Sems to Be Waiting for the Next Catalyst ITS CURRENT BAANCE BETWEEN CAUTION AND OPTIMISM, “STRIJERS SAID.
Sidrah Fariq, Global Head of Retail Sales and Business Development at Deribit, Said The Persenti Put Bias RepreSents Market Maturity.
“In Some Sense, BTC Options Are Behaving More Like S&P Index Options – A Sign of Maturity, But Also of Market Caution,” Fariq Said.
Additionally, Traders Writing Covered Calls-Selling Call Options Against Their Spot Holdings to Collect Premium-WHICH MAY BE CONTRIBUTING TO THE PUT BIAS, PARICULARLY IN LONGER-DATED OPTIONS. This Strategy Generates Additional Income But Can Cap Upside Potential.
COVED CALL HAS EMERGED As A Popular Strategy Among BTC, Eth and XRP Traders in Recent Years.
Hedera’s Token Endured A Sharp Decline, Breaching Key Support Levels Before Stabilization Near $ 0.24.
- HBAR Fell 3.38% Over 23 Hours, Droping from $ 0.25 to $ 0.24 Amid Heavy Selling and A 55.91 Million Trading Volume Spike.
- The token Breached Multiple Support Levels But Stabilized at $ 0.24, Forming An Ascending Trianle Pattern that Signals Potential Consolidation.
- Despite Short-Term Weakness, Institutional Backers and Hedra’s Energy-Efficiency Technology Continue to Underpin ITS LONG-TRM MARKET APEAL.
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