Bitcoin (BTC) entrepreneurs (BTC) have purchased more downside protection after federal rate reserve: deribit
Bitcoin Entrepreneurs are constantly falling in volatility, regulating their bullish exposure despite recent positive signals, such as the Federal Reserve rate, Crypto Derivatives Exchange’s CEO Luuk Strijers said in CoinDesk.
Earlier this week, the US Fed cut off interest rates by 25 points basis and signed an additional 50 basis of prevention points expected at the end of the year. THE SECURITIES AND EXCHANGE COMMISSION (Sec) A new standard list was released for crypto ETFs, which is set to speed up the approval process.
Meanwhile, the DVOL index of the deribit, which measures the 30-day indicated volatility, remains covered at about 24%, the lowest of two years.
Historically, bullish feelings are strong in these situations, causing call options – BTC prices rises – to be more expensive than Put Options, providing insurance against price decline. However, in the derivit, place the options that will continue to trade in a premium in all time frames.
“Skew at all times of frames remains flat in the negative,” Strijers explained. “We continue to see demand for hedge downside exposure, while the call overwriting flow forces the topside.” The deribit is the largest crypto choice exchange worldwide, which costs more than 80% of global activity.
The skew options measure the indicated difference -volatility between the call and place options for a given expiration. A negative skew indicates a bearish sentiment, with investors relying on a price collapse; A positive skew reflects bullish expectations.
Currently, seven, 30, 60, and 90 -day skews are slightly negative, with a neutral 180 -day neutral, according to data resource data.
This indicates ongoing concerns about a possible BTC correction.
Investors who are buying fed are concerned that the decision of the Fed is that the market is leading the decision and that a worsening economic perspective can reduce demand for riskier assets, such as Bitcoin.
“After the Fed’s decision, some of the previous optimization faded. The market now seems to be waiting for the next catalyst-whether macro or specific crypto-to break the stalemate and push positioning options outside the current balance between caution and optimization,” Strijers said.
Sidrah Fariq, Global Head of Retail Sales and Business Development in the derivit, said the ongoing bias of the bias represents the market maturity.
“In some sense, BTC options act more like S&P index options – a sign of maturity, but also market care,” Fariq said.
In addition, entrepreneurs who write cover calls-the sale of call options against their handling places to collect premiums-which can contribute to putting bias, especially in longer dated options. This approach generates additional revenue but can capture potential potential.
Covered call is appear as a popular approach BTC, ETH and XRP entrepreneurs in recent years include.
