In a surprising development, options associated with Bitcoin (BTC) and Euro-dollar (EUR/USD) indicate the exchange rate of the US dollar despite a downturn in the US stock market. This trend suggests that the “Sell America” trade is gathering pace.
Currently, Bitcoin’s short and almost dated risk transfers- which measure the demand for call options compared to put options- slightly positive, indicating a bullish bias. The data drawn from sources such as deribit and amber data signalizes an improvement from the previous trend, where there was a consistent preference to put in almost dated options.
In parallel, the EUR/USD risk of the EUR/USS is also turned to positive, which demonstrates a favorable prospect of EUR call options, according to data traced by Jens Nordvig, founder and CEO of Exante Data Inc.
A call option gives the buyer’s asymmetrical upward exposure to the underlying asset, while a put option protects against price drop. Therefore, a call buyer is an implicit bullish, while a put -buyer is Bearish seeking to uncover or take advantage of expected price drop.
Preference for BTC and EUR calls over the dollar indicates expectations of continued capital rotation away from US assets, which have recently fallen out of benefit with investors and to Bitcoin, the euro and other assets such as gold. .
On Monday, Dow Jones industrial average fell over 700 points, bringing his monthly decline to more than 9%. In Tandem River Dollar Index-Reflecting Greenback’s performance against larger Fiat currencies, including euro-to a three-year low at 98, down 10% over the past three months. In addition, prices for treasurers of longer duration have fallen, resulting in the 30-year-old dividend rising by over five basic points to 4.90%.
Contemporary sales in US assets are in line with rising police security derived from President Donald Trump’s trade war and his reported intentions to reject bold chairman Jerome Powell and calls for a reconsideration of trade strategies.
“We are in a strategic asset allocation change that causes all kinds of correlations to turn in a historic way. It is a time for many investors to take a step back and think fresh,” Nordvig said at X.
On Monday, BTC passed by $ 88,000, with EUR/USD climbing to 1,1575, the highest since November 2021. Gold topped $ 3,400 per year. Ounce of price tag for the first time and rose to a new life of $ 3,495 at the time of the press.
