“The Fed Retaned Forecast for Two Rate Cuts Wednesday, With Powell Calling The Inflationary Impact of Trump’s Tariffs Transitory.”, – WRITE: www.coindesk.com
As of Writing, BTC’s Short-Term and Long-Term Risk Reversals, WHICH SHOW The IMPLIED VALLATY Premium (Demand) for Bullish Bets or Calls Versus Puts, Were Positive, ImPily The Leading Cryptocurrency, Per Data Source Amberdata.
It Marks A Shift from The Bearish Sentiment That Prevail Weeks Before The Fed Meeting When Short and Near-Dated Puts Were Pricier Than Calls, Reflection Downside Fears.
“Frontend Skew Flipped Calls. Flows Featured 21 Mar Outright Calls and Calendars Bought Chat. Institutions and Large Traders Execute Block Trades Via Otc Platforms Like Paradigm, WHICH Are Thon Listed on Deribit.
Options Are Derivative Contracts That Give the Purchaser The Right But Not the Oblagation to Purchase or Sell The Underlying Asset at A Podterminated Price at A Later Date. A Call Option Gives The Right to Buy, and A Put Option Gives The Right to Sell.
BTC’s Risk Reversals. (Ambrdata/Deribit)
The Bullish Shift in the Short and Near-Dated Options Happened As the Federal Reserve (Fed) retaned the Forecast for Two Rate Cuts this Year Despite Making the Expert The Bank Said It Will Slow The Pace of Balance Sheet Run Off from April.
More Importantly, Chairman Jerome Powell DownPlayed Fears About the Inflationary Impact of Trump’s Tariffs, Calling It Transitory.
Additionally, The End of the Prolonged Legal Tussle Between the Sec and Ripple, WHICH Uses Xrp for Cross Border Transactions, Likely Aided The Sentiment. Xrp, with the Market Cap of $ 142.21 Billion, is the World’s Four Largest Cryptocurrency.
Ether Puts Remain PricierThese Positive Developments, However, Are Yet to Translate Into A Positive Flip in the Short and Near-Dated Ether Options.
AT Press Time, Ether Risk Reversals Showed a Bias for Puts Out to the May Expiry, Retaining The Pre-Fed Cauios Sentiment Despite The Looming Ethereum Pectra Upgrade.
The Technological Update Will Introduce Smart Accounts to Ethereum, Blob Scaling and Validtor UX Enhancements and Seen As a Game Changer by Many. Ethereum Developers Launched A New Test Network, Hoodi, This Week to Carry Out the Impening Upgrade, Experts Effect on March 26.
Note that the personal bias for ether puts could be Partly Driven by Traders Looking to Hedge Downside Risks in Other Altcoins. Ether is Widly Seen as the Altcoin Leader.
Ether Risk Reversals. (Ambrdata/Deribit)
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